Telekom Networks Malawi profits up 3% to K5.4 bn: Shareholders to pocket K3 bn

Telekom Networks Malawi (TNM), the country’s integrated mobile and internet operator, has reported an increase in net profit by 3% for 2015, the company said on Wednesday.

Chikaonda: TNM profits but volatile exchange rates bite
Chikaonda: TNM profits but volatile exchange rates bite

In published results, TNM, listed on the Malawi Stock Exchange (MSE) and whose main rival is the local unit of India’s Bharti Airtel, said net profit after taxation for FY 15 increased by 3% to MWK 5.4 billion from MWK5.2 billion in 2014.

TNM noted however that it experienced high finance costs due to volatile exchange rates on FCD expenditures, resulting in a foreign exchange rate loss of MWK1.49 billion.

The telco said net financing or borrowing cost increases to K4.4 billion from K2.8 billion in 2014, and the figure included an FX loss of K1.49 billion, up from K420 million the previous financial year.

“A high inflation environment, high interest rates, volatile exchange rates with considerable foreign currency expenditure continues to drive increased costs for the operation,” said the report co-signed by new CEO Douglas Stevenson and Chairman Mathews Chikaonda.

Stevenson has joined the Malawi telco from Vodacom Africa.

In 2015, TNM completed an outright acquisition of Malawi’s leading internet service provider, Burco to become an integrated mobile and ICT company.

TNM said in the report accompanying the FY-15 statements that it needs to maintain profitability to sustain future investment in infrastructure expansion projects and technology upgrades.

It proposed to give shareholders of the company a total dividend of above K3 billion at the rate of 30 tambala per share, up from 19 tambala.

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6 years ago

Nkasi, switch off you data bro? which phone are you using? for how many times have you experienced this? look also to you dialed numbers?

6 years ago

But stop removing our airtime from our phones.Please explain why airtime keep on spiriting away even when you do not phone anyone!when you have K50.00 the time you go to bed ,lo check in the morning it will be less !what actually happens?school me please!

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