Malawi: TNM sees rise in FY 2010 revenue, EBITDA

Mergers, Acquisitions and Financial Results

Mobile operator Telekom Networks Malawi (TNM) has announced its results for the twelve months ended 31 December 2010, reporting a 21% year-on-year increase in revenue to MWK9.93 billion (USD64.8 million). Earnings before interest, tax, depreciation and amortisation (EBITDA) for full year 2010 totalled MWK3.647 billion, up 25% compared to the MWK2.91 billion reported in the previous year.

TNM attributed the rise in turnover and EBITDA to aggressive investment in infrastructure and related marketing activities. However, rising investment increased the depreciation charge by MWK571 million in 2010 to MWK1.61 billion and increased the levels of short-term debt, which resulted in a rise in borrowing costs by MWK273 million. As a result, net profit declined from MWK1.21 billion in FY 2009 to MWK1.06 billion a year later.

The company said its key achievements in 2010 included the commissioning of a new pre-paid billing platform, the construction of 70 new base stations to boost coverage, and the launch of new voice and data tariff bundles for pre-paid users. TNM said it increased its market share from 33% to 37%, but did not release any subscriber figures.