TNM warns of drop in profits

Mergers, Acquisitions and Financial Results

Telekom Networks Malawi (TNM), the country’s second largest mobile operator by subscribers, has said that profit after tax for the six months ended 30 June 2012 is expected to be approximately 30% lower than the year-ago period. Company secretary Christina Mwansa said in a trading statement that the fall in profit is ‘largely due to foreign exchange losses incurred following the recent sharp devaluation of the Malawi kwacha during the second quarter of the year, and the resultant increase in finance charges.’ Under the Listings Requirements of the Malawi Stock Exchange, a listed company is required to publish a trading statement as soon as there is a reasonable degree of certainty that the financial statements for the period to be reported upon next will differ by at least 20% from that of the previous corresponding period. TNM’s profit after tax for the first half of 2011 totalled MWK587 million (USD2.15 million), an increase of 42% over the MWK412 million reported in the same period of 2010. The company’s financial results for the first half of 2012 will be published by the end of August, following a review and approval by the board of directors.