Mobile costs bite Paratus earnings

Paratus Namibia Holdings Ltd has issued a trading statement to the Namibian Stock Exchange (NSX), signalling materially higher revenue but substantially lower earnings per share for the six months ended 31 December 2025, as the group absorbs the costs of its newly launched mobile business.

Revenue on the rise

Revenue for the period under review is expected to be between 10% and 30% higher than the N$327.3 million recorded for the comparative six months ended 31 December 2024, implying a range of approximately N$360 million to N$425 million.

The growth reflects continued momentum in the group's core internet and connectivity services, even as the mobile venture, launched in September 2025, begins its commercial ramp-up.

Earnings per share to take a hit

Despite the revenue uplift, both headline earnings per ordinary share (HEPS) and basic earnings per ordinary share (BEPS) are expected to fall by more than 30% against the same comparative period, meeting the NSX threshold for a trading statement.

Paratus attributed the earnings pressure to three principal factors: a significant increase in operating expenditure tied to the mobile project, higher finance costs arising from additional borrowings to fund infrastructure deployment, and increased depreciation charges on the expanded network.

"The decrease in HEPS and BEPS is primarily attributable to lower profitability during the period, reflecting the early ramp-up phase following the launch of the mobile business during September 2025," the company said.

Mobile growth expected to improve profitability over time

Paratus cautioned that revenue from the mobile business remains in its initial growth phase, and that near-term margins will remain under pressure as customer acquisition scales up.

"Profitability is expected to improve over time as the customer base expands and operational cost efficiencies are realised," it said.

For context, the group recorded revenue of N$327.3 million, operating profit of N$66.4 million, and earnings before interest, taxation, depreciation, and amortisation (EBITDA) of N$129.7 million for the six months ended 31 December 2024. Profit before taxation for the same period stood at N$31.7 million.