TNM boosts H1 revenue and EBITDA amid moderate subscriber growth

25 August 2017

Mergers, Acquisitions and Financial Results

Telekom Networks Malawi (TNM) said revenue rose to MWK 35.81 billion in the first six months of 2017 from MWK 29.13 billion a year earlier, with service revenue climbing to MWK 35.22 billion from MWK 28.70 billion amid moderate subscriber growth. EBITDA increased to MWK 11.95 billion from MWK 9.51 billion in the same period last year and the EBITDA margin remained at 33 percent.

Net financing costs decreased to MWK1.49 billion from MWK 2.19 billion in 2016, which includes foreign exchange losses of MWK 25 million against MWK 427 million in 2016.  TNM said it has been successful with initiatives to improve revenue streams and manage costs in the first half of the year. Net profit after taxation increased by 72 percent to MWK4.75 billion from MWK 2.77 billion in 2016.

TNM invested in capital expenditure of MWK 12.33 billion compared with MWK 3.81 billion in 2016, mainly in 4G mobile technology, Lilongwe and Blantyre quality improvement sites and Northern region coverage sites.

TNM said macro-economic conditions improved during the first six months of 2017 with reducing inflation and interest rates, and stable exchange rates. Against this background, management remain focused on maintaining current levels of profitability to support future investment.

The company expects the challenging business environment to persist in the second half of 2017, although marginally better than the previous year. It will continue to implement cost management initiatives and strategies aimed at expansion and diversification of its revenue base. 

The directors have declared a first interim dividend for the financial year to 31 December of MWK 1.51 billion, equivalent to MWK 0.15 per share, payable on 01 September 2017 to shareholders of record at the close of business on 18 August. The register of members will be closed from 21 August to 23 August, both dates inclusive.

Source: Telecom Paper