SPTC makes over E100m profit

MBABANE – The harsh economic conditions failed to ‘shake’ the  Swaziland Posts and Telecommunications Corporation (SPTC) as it managed to record  a profit of over E100 million for the 2008/2009 financial year.

This translates to about a E40 million hike in profits made by the corporation when compared to the previous year and represents a 62 per cent increase. According a financial statement issued by the corporation, since 2007, the public institution has been able to attain profits despite the many challenges it has been subjected through, the recent one being the burning of  its communication fibre lines that resulted in serious network interruptions.

The company had to part with over a quarter of a million Emalangeni to fix the problem that has been labelled as acts of sabotage and strongly condemned by the corporation and other quarters. In 2007, profits amounting to over  E44 million were attained while E64 million was realised in 2008. The 2008/2009 financial year proved to be a good one, as profits amounting to E104.6 million were made by the corporation. This has been partly attributed to a turnaround strategy that the corporation is implementing.

The strategy was formulated mainly to tighten unnecessary expenditure controls, whilst at the same time ensuring the corporation’s performance remained at the desired levels. Apart from the profits, revenue collected during the financial year under review amounted to E464.6 million, which is a 11.5 per cent increase from the previous year.
A commentary from the corporation reads, “Despite unfavourable economic conditions, the corporation performed well during the period under review.”

With regards to operation costs which the corporation had been trying to contain, as per the recommendations of its turnaround strategy, costs containment once again continued to be a focus during the year under review. “The corporation’s operating expenses decreased from E201.3 million in March 2008 to E151.4 million in 2009, which is a 25 per cent decrease,” reads the statement in part.

Government’s intervention to restructure the balance sheet of the company is said to have also played a pivotal role, as loans for the corporation decreased from E172.9 million in March 2008 to only E9million in 2009.
The corporation will today host a breakfast meeting where the financials will be deliberated further.

See full statement on page 7.

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