Dar es Salaam. State telecom, TTCL Corporation, has said it is in good financial shape to issue dividend to the government before the end of the current financial year, claiming that losses receded by 42.3 per cent in 2014/15.
“The loss decreased from Sh26 billion in 2014 to Sh15 billion in 2015,” the corporation’s Director of Finance, Mr David Kalayi said when explaining to The Citizen on how the corporation would be able to issue a bonus to the government considering reports of struggles in the recent past.
Mr Kalayi noted further that there was a revenue increase from Sh96 billion in 2014 to Sh104 billion in 2015. In 2016, he said, revenues grew to Sh119 billion (equivalent to 21 per cent). Giving an update for the current financial year, he said profits were expected to improve by 20 per cent compared to the 2016 performance. “Due to an increase in revenues we are assured of meeting our targets, hence being able to issue dividends to the government after 15 years of not having done so,” he assured.
“The management will continue to focus on improving services to their customers at affordable prices, increasing number of new customers as well as distributing 4G LTE in all regions by June this year,” he added. In the past three financial years the corporation operated without making a profit.
Speaking last week at a press conference, TTCL chief executive officer Waziri Kindamba said they were eyeing a profit of between Sh7 billion and Sh8 billion starting next year.
Currently, the firm generates 90 per cent of its revenues from data services due to lower cost and efficiency compared to other mobile operators in the country, he said.
Mr Kindamba expressed the firm’s optimism on TTLC Pesa, which he said was growing at a very fast rate due to technological advancement that has swept over the mobile money sector in the country.
He said the government had acquired 35 per cent of shares that Indian company Bharti Airtel held in TTCL, paying a total of Sh14.7 billion, which made the state corporation the current owner of 100 per cent stake in the telecom.
The Quarterly Communications Statistics Report published by Tanzania Communications Regulatory Authority (TCRA) ended December, last year, showed that the voice telecom subscriptions for TTCL had risen from 393,574 to 429,735.
Monthly subscriptions’ net addition grew to 36,161 in December and users of mobile money also increased by 3,135 new accounts.