African markets

Namibia: Paratus declares dividend of 20 cents for 2021

Listed telecommunications company Paratus Namibia Holdings Limited has declared a final dividend of 10 cents for fiscal 2021.

It will be the highest dividend since the company’s IPO in 2017 and will be paid on November 12 of this year.

This brings the annual dividend that the company partially paid and declared to 20 cents per share.

The company released its 2021 financial statements for the year ending June 30, 2021 last week, posting a profit of N $ 28.9 million.

This was obtained from a turnover of 340 million Namibian dollars, mainly generated by the group’s operating company, Paratus Namibia.

According to the director’s comment on the financial statements, Paratus Namibia, as an operating entity, achieved recurring revenue of N $ 305.1 million (June 2020: N $ 283 million), which represents a growth of 7.8% at base.

Non-recurring revenues, which represent local network installations at customers’ homes and equipment sales, however fell to N $ 30.8 million (June 2020: N $ 51.7 million).

The 40.4% drop, administrators said, was attributed to a slowdown in construction of new commercial buildings due to the weak local economy.

Other notable figures from the statements include operating profit of N $ 48 million, as well as the balance of assets now approaching N $ 1 billion to N $ 971 million.

Assets stood at N $ 735 million as of June last year.

This year, the company also launched and listed a corporate bond to the tune of N $ 1 billion, of which N $ 200 million has been issued to date in two tranches of N $ 175 million and N $ 25 million, respectively.

The two issues mature in 2024 and 2026, respectively, and the N $ 200 million to date has resulted in management costs of N $ 478,275 in total.

When launching the bond, Paratus said its product would be used “for general corporate purposes, as well as for infrastructure deployment.”

According to the company’s financial update, Paratus installed a total of 342 km of new fiber conduit for the fiscal year ending June 2021.

The company also said it acquired an erf to build a data center and that construction has started.

The project is expected to be completed in the third quarter of 2022 at a total cost of N $ 123 million. The total capital expenditure for this project at the end of the year was N $ 18 million.

The company offers a network in six African countries – Angola, Botswana, Mozambique, Namibia, South Africa and Zambia – with additional international points of presence located in Johannesburg (South Africa), Lisbon (Portugal) and London (United Kingdom) ).

Further details of the note are available on the Paratus website.

Shares of the company closed yesterday at N $ 12 per share.