By Muhammad Bah
The revenue of the Gambia Telecommunication Company (GAMTEL) during the year 2013 dropped by 164 million dalasis, registering a total revenue of D1,030 billion dalasis compared to 1,194 billion dalasis generated in 2012.
This financial performance was revealed on Thursday 22 February during the presentation of GAMTEL Activity report of 2013 to the Public Accounts and Public Enterprises Joint Committee of the National Assembly.
According to the company’s management the reason for this drop is attributed to the continuous fall in international traffic coupled with the rearrangement by government of the associated revenue from the provision of these services.
They also noted that the revenue generating capacity and operating efficiency of GAMTEL has slowed downed significantly during the third quarter of 2013 due to the rearrangements by government in the utilisation of Gamtel’s 50% share of the international gateway traffic.
The total cost of sales in 2013 was D537 million dalasis compared to D692 million dalasis in 2012 representing a decrease of D155 million dalasis. The company highlighted decline in their gross profit in the year by D9 million dalasis from D502 million dalasis in 2012 to D493 million dalasis.
On the other hand, the management informs that the utilities Administrative expenses has increased significantly from 332 million dalasis in 2012 to 388 million dalasis in 2013 representing an increase in Administrative expenses of D56 million dalasis or 17%.
The report reveals that the loss increased from D93 million dalasis in 2012 to 141 million dalasis in 2013, representing an increase of 48 million dalasis or 52%.
The Management admitted the losses made before PAC/PEC and said it is primarily caused by a decrease in international revenue as well as increase in administrative expenses.
In conclusion, the balance sheet shows a reduction of 68 million from 1,207 billion dalasis in 2012 to D1,139 billion dalasis in 2013, representing a reduction of 5.6%.
Finally, they told parliamentarians that the company experienced a significant drop in the value of the non-current assets from D904 million dalasis in 2012 to D695 million in 2013 representing 23%, and said this was a result of the depreciation of the fixed assets and insufficient investment in the new assets.
Meanwhile the Gambia Public Procurement Authorities rated GAMTEL as 90% compliant.