Botswana Telecommunications Corporation (BTC) announces its results for the financial year ended 31 March 2017. BTC's strategy for the first year post listing, was to ensure the return of value to shareholders by delivering on its financial commitments as outlined in the Initial Public Offering (IPO) Prospectus.
FINANCIAL HIGHLIGHTS
The results for the year ended 31 March 2017 show a significant improvement in the performance of the Corporation:
Revenue growth of 8% year on year to P1.638bn
Costs decreased by 26% to P1.401bn from P1.883bn in the prior year.
Profit for the year of P237m compared to prior year loss of P371m.
Return on Capital Employed stands at 12%
Strong cash flows with cash and cash equivalents of P517m
No impairment adjustment required
Revenue Growth
Decline in Costs
Profit Growth
Asset Growth
Cash Increase
RevenueP '000
2017 1,638,097
2016 1,512,291
Total CostsP '000
2017 1,400,748
2016 1,883,110
Profit/(Loss) forthe year
P '000
2017 237,349
2016 (370,820)
Total AssetsP '000
2017 2,319,871
2016 1,949,019
Cash and Cash Equivalents
P '000
2017 516,549
2016 390,029
STRATEGIC DIRECTION FUTURE OUTLOOKThe BTC's strategy of transformation and growth is underpinned by a drive The Telecommunications landscape continues to evolve, with further to create a sustainable business and shareholder value, focusing on business liberalisation of the market. BTC remains very optimistic about its future growth, customer experience, operational efficiency, innovation and engendering prospects, as it continues to leverage on its unique product offering and wide a culture of high performance. network coverage to consolidate its position to become a market leader in
communication services.
The Company will continue to make significant investments in its network and people, in order to provide quality, reliable and affordable services to its customers, while creating value for its shareholders.
STATEMENT OF FINANCIAL POSITION | 2017 | 2016 |
ASSETS | Pula '000 | Pula '000 |
Non-current assets | 1,208,312 | 985,520 |
Property, plant and equipment | ||
Intangible Asset | 71,176 | 43,251 |
Deferred Tax Assets | 87,947 | 123,738 |
1,367,435 | 1,152,509 | |
Current assets | 77,459 | 92,352 |
Inventories | ||
Trade and other receivables | 278,428 | 218,129 |
Related party prepayment | 80,000 | 96,000 |
Cash and cash equivalents | 516,549 | 390,029 |
952,436 | 796,510 | |
TOTAL ASSETS | 2,319,871 | 1,949,019 |
EQUITY AND LIABILITIES | 478,892 | 228,892 |
Capital and Reserves | ||
Stated Capital | ||
Revaluation Reserve | 322,720 | 337,147 |
Accumulated Profits | 1,147,547 | 986,071 |
1,949,159 | 1,552,110 | |
Non - Current Liabilities | 109,077 | 143,586 |
Development Grants | ||
Employee related provisions | 21,245 | 37,256 |
130,322 | 180,842 | |
Current Liabilities | 191,430 | 173,290 |
Trade and other payables | ||
Current portion of development grants | 29,453 | 24,397 |
Employee related provisions | 19,507 | 18,380 |
240,390 | 216,067 | |
TOTAL EQUITY AND LIABILITIES | 2,319,871 | 1,949,019 |
The annual financial statements are presented in Botswana Pula (BWP) which is the company's functional currency.
BASIS OF PREPARATIONThe financial statements have been prepared on a historical cost basis, except as modified by the measurement of certain financial instruments at fair value and the revaluation of certain assets, and on a going concern basis.
STATEMENT OF COMPREHENSIVE INCOME | 2017 | 2016 |
Sale of goods and services | Pula '000 | Pula '000 |
1,615,022 | 1,485,839 | |
Interest income | 23,075 | 26,451 |
Revenue | 1,638,097 | 1,512,291 |
Cost of services and goods sold | (675,573) | (721,632) |
Gross Profit | 962,524 | 790,659 |
Other income | 35,547 | 29,425 |
Selling and Distribution costs | (48,728) | (42,188) |
Administrative expenses | (402,311) | (406,400) |
Impairement of Property Plant and Equipment | - | (522,404) |
Other Expenses | (272,489) | (317,038) |
Profit / (loss) before tax | 274,543 | (467,947) |
Income tax credit/(expense) | (37,194) | 97,127 |
(Profit / (Loss)for the year | 237,349 | (370,820) |
Total comprehensive income / (loss) for the year | 237,349 | (370,820) |
Basic and diluted earnings/(loss) per share (thebe): | 22.60 | (46.35) |
Total Revenues for financial year March 2017
increased by 8% year on year, compared to an almost flat performance of 0.4% in the previous financial year March 2016. The increase was anchored by an across the board increase in Fixed, Data, and Mobile revenues as follows:
Fixed Telephony Revenues increased by 4%. Fixed voice continues to provide a solid revenue base for the company contributing 32% to total revenues.
Data Services Revenues increased by 21%, with contribution to total revenues increasing from 26% to 29%.
Mobile Revenues increased by 5% and contributed 37% to total revenues.
Total costs declined by 26% year on year. No impairment adjustment was recognised for the year following an impairment assessment exercise carried out at year end, compared to the P522m impairment recognised in the previous year. Further, cost of sales declined by 6%.
CASHFLOWCash balances increased by 32% from P390m to P516m. Cash balances were boosted by the capital raised during listing of P250m. Additionally, Cash Generated from Operations increased by 32% from P254m to P335m.
Dividends paid during the year amounted to P90m comprising a March 2016 dividend of P52m which was paid in August 2016, and a September 2016 interim dividend of P38m which was paid in February 2017.
Purchase of PPE (capital expenditure) increased by 57% on the back of capital commitments to strategic projects, namely; Mobile 3G/4G Expansion, Billing Platforms Convergence, Data Centre and Network Operation Centre (NOC).
Board of DirectorsLorato Boakgomo-Ntakhwana (Board Chairperson)
Anthony Masunga (Managing Director)
Maclean Letshwiti Gerald Nthebolan Serty Leburu
Alan Boshwaen Choice Pitso
Prof. Rejoice Tsheko
Company SecretaryKaelo B. Radira
Company Registration NumberCO2012/12936
Registered OfficeMegaleng Khama Crescent Plot 50350
P O Box 700
Gaborone, Botswana
Auditors Ernst & Young P O Box 41015Gaborone, Botswana
BankersAfrican Banking Corporation Botswana Limited
Barclays Bank Botswana Limited
First National Bank Botswana Limited
Stanbic Bank Botswana limited
Standard Chartered Bank Botswana Limited
Bank Gaborone
FINANCIAL POSITIONTotal assets increased by 19% from prior year P1.9bn to current year at P2.3bn. Property, Plant and Equipment grew by 23% owing to the roll out of Mobile Network Expansion (3G and LTE), Billing platforms convergence and other strategic programmes.
DIVIDEND DECLARATIONThe BTC Board of Directors has declared a final dividend of 11.09 thebe per share, payable to all shareholders registered in the books of the Company at close of business on Friday 14 July 2017. The dividend will be paid net of applicable withholding taxes under the Botswana Income Tax Act, on or about Friday 25 August 2017.
By order of the Board
Lorato Boakgomo-Ntakhwana Anthony Masunga
STATEMENT OF CASHFLOWS | 2017 | 2016 |
CASH FLOWS FROM OPERATING ACTIVITIES | Pula '000 | Pula '000 |
Operating profit before working capital changes | 369,765 | 262,450 |
Working capital adjustments: | 14,893 | 1,575 |
Decrease in inventories | ||
(Increase)/decrease in trade and other receivables and prepayments | (44,299) | 47,258 |
Decrease in trade and other payables | (6,127) | (57,103) |
Cash generated from operations | 334,232 | 254,180 |
Ordinary dividend paid to shareholders | (89,765) | - |
Net income tax refunded | 23,260 | 2,722 |
Net cash from operating activities | 267,727 | 256,902 |
CASH FLOWS USED IN INVESTING ACTIVITIES | (351,270) | (223,573) |
Investment to expand operations: | ||
Purchase of property, plant and equipment | ||
Purchase of intangible assets | (47,699) | (30,997) |
Proceeds from disposal of property, plant and equipment | 7,026 | 4,121 |
Interest income | 23,075 | 26,451 |
Net cash used in investing activities | (368,868) | (223,998) |
CASH FLOWS FROM FINANCING ACTIVITIES | 250,000 | - |
Share issue | ||
250,000 | - | |
Increase in cash and cash equivalents | 148,859 | 32,904 |
Net foreign exchange difference on cash and cash equivalents | (22,339) | (8,852) |
Net Cash and Cash equivalent at beginning of the year | 390,029 | 365,977 |
Cash and Cash equivalent at the end of the year | 516,549 | 390,029 |
Board Chairperson Managing Director
STATEMENT OF CHANGES IN EQUITY | Stated Share Capital | Revaluation Reserve | Accumulated Profits | Total |
Balance at 1 April 2015 | Pula '000 | Pula '000 | Pula '000 | Pula '000 |
228,892 | 351,574 | 1,342,464 | 1,922,930 | |
Loss for the year/total comprehensive income | - | - | (370,820) | (370,820) |
Depreciation transfer for land and buildings | - | (14,427) | 14,427 | - |
Balance at 31 March 2016 | 228,892 | 337,147 | 986,071 | 1,552,110 |
Profit for the year/total comprehensive income | - | - | 237,349 | 237,349 |
Issued shares during the year | 250,000 | - | (90,300) | 250,000 |
Ordinary dividend declared | - | (90,300) | ||
Depreciation transfer for land and buildings | - | (14,427) | 14,427 | - |
Balance at 31 March 2017 | 478,892 | 322,720 | 1,147,547 | 1,949,159 |
BTC - Botswana Telecommunications Corporation Ltd. published this content on 27 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 June 2017 12:14:07 UTC.
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