Swaziland - Reduced calling rates led to falling fixed revenues

[observer] The Swaziland Posts and Telecommunications Corporation (SPTC) has recorded a 62% decrease in profit amounting to only E39.975 million as at March 31, 2010.

In its financial statements for the year ended March 31, 2010, the corporation states that the decrease, compared to the E104.622 million profit achieved in 2009, was mainly attributed to lower dividend of E32.8 million received from Swazi MTN, which was a decline of 51.1% compared to E67.65 million received in 2009.
Meanwhile, the corporation reported 5% revenue increase from E464.655 million in 2009 to E488.14 million in the period under review.

“During the year, there was a review of telephone tariffs which resulted in a reduction of international and sub-regional rates, while no changes were made to tariffs in respect of local calls,” it states.

The corporation reports that cost containment continued to be a focus during the year under review. However, its operating costs increased by 9%, from E218.615 million in 2009 to E239.164 million in 2010.

Increase

It attributed this increase in the provision underlying the Pension Fund. Also, the company’s investment in the promotion of the ‘ONE’ brand in preparation for the commercialisation of its fixed wireless products resulted in an increase in marketing and branding costs.

The corporation’s capital expenditure for the year amounted to E175.143 million, the bulk of which was on telecommunications equipment commissioned as part of the company’s Next Generation Network (NGN) project roll-out.

The corporation also recorded an increase in cash and cash equivalents from E26.369 million in 2009 to E74.926 million in the year under review, which mainly arose from the reduction of financial assets.

SPTC records E39.97m profit, 62% less than 2009