Cameroonian telecommunications operator, Camtel, posted a record net profit of 11.1 billion FCFA in 2023, marking a turning point in its history with a dividend payment to the State, despite persistent operational challenges.
Cameroon Telecommunications (Camtel) achieved an unprecedented performance in 2023, posting a net profit of 11.1 billion FCFA, an increase of 23% compared to the previous year. At the general meeting of September 30, shareholders approved the distribution of 4.6 billion FCFA in dividends to the State, a first since the creation of the company. This decision marks a turning point in the trajectory of the operator, often criticized for its management.
Camtel has seen its turnover double in five years, reaching 207.4 billion FCFA in 2023, compared to 108.8 billion FCFA in 2018. The Board of Directors congratulated the staff for their efforts, noting that this performance is the result of collective work. In addition to dividends, 1.16 billion FCFA was allocated to the legal reserve, and nearly 5.82 billion FCFA was carried forward in reserves to support future investments.
However, this financial upturn comes in a context of significant challenges. In 2022, the Technical Commission for the Rehabilitation of Public Enterprises (CTR) described Camtel as an “obese and budget-consuming” company, highlighting an ineffective management style. The operator had 3,996 employees, including 170 employees directly reporting to general management, with personnel costs reaching 34.7 billion FCFA, or more than 33% of the added value generated.
Despite these financial results, the quality of service remains a concern. Camtel, which announced investments of 117 billion FCFA in 2023, is facing criticism over the effectiveness of this spending. Cameroon’s Minister of Posts and Telecommunications recently stated that, although investments have been made, the slow pace of network expansion and connectivity issues remain critical. Indeed, the operator has acknowledged several service interruptions, including in January 2023, following cable cuts.
For 2024, Camtel plans to reduce its investment budget to 109.5 billion FCFA, a decision that raises questions about its ability to improve service quality. As the company strives to improve its financial performance, the challenge of modernizing its infrastructure and improving customer satisfaction remains crucial. Dependence on the state, as the sole shareholder, also makes the company’s future uncertain, especially given its debt of 648 billion FCFA at the end of 2022.
Camtel finds itself at a decisive crossroads, having to combine its profitability ambitions with the imperative of improving the quality of service to guarantee its sustainability and its reputation on the telecommunications market in Cameroon.
