Paratus Namibia Holdings Limited anticipates a 10-30% increase in revenue for the year ended 30 June 2026. However, the company expects headline earnings and basic earnings per share to decline by more than 30%. This forecast is primarily attributed to losses incurred from its mobile business, which commenced operations in September 2025. The mobile venture is in its early growth phase, resulting in significantly higher operating costs.
The launch of the mobile business has led to increased expenses, including additional infrastructure funding and higher depreciation due to the expanded network. According to a trading statement issued on 23 September, these factors have negatively impacted the company's earnings. Despite this, Paratus remains optimistic about future profitability, expecting improvements as mobile revenue and the customer base grow, and operating efficiencies are realised.
Paratus has invested substantially in network infrastructure, with N$1.417 billion spent since 2018, and an additional N$600 million allocated to the mobile network. The company launched the first private mobile network in Namibia with LTE and 5G technologies in September 2025. This significant investment has contributed to the company's financial performance, with overall results expected to outperform budget for the 2026 financial year.
The company's traditional business has experienced stronger-than-anticipated growth, benefiting from increased brand awareness following the mobile launch. Paratus attributes this growth to its expanded network and improved services. Despite the costs associated with launching and expanding the mobile business, the company continues to generate positive cash flows.
The directors of Paratus report that mobile customer sign-ups have been consistent with the approved business plan. This consistency suggests that the mobile business is on track, despite initial losses. The company's revenue growth is expected to be driven by its expanding customer base and increasing mobile revenue.
Paratus expects to publish its unaudited results for the year ended 30 June 2026 on or about 30 September 2026. The anticipated revenue growth contrasts with the expected decline in earnings, reflecting the financial impact of the company's investment in its mobile network during its first year of operation.
The company's financial performance for the 2026 financial year is expected to outperform its budget, driven by stronger-than-anticipated growth in its traditional business. Paratus remains committed to improving profitability as its mobile business continues to grow and mature.
Key points
- Paratus Namibia expects a 10-30% revenue growth for the year ended 30 June 2026.
- The company's headline earnings and basic earnings per share are expected to decline by more than 30% due to mobile business losses.
- Paratus has invested N$1.417 billion in network infrastructure since 2018 and an additional N$600 million in the mobile network.
