TNM net profit more than doubles

Mergers, Acquisitions and Financial Results

Telekom Networks Malawi (TNM), the country’s second largest mobile operator by subscribers, has posted net profit after tax of MWK5.243 billion (USD11.9 million) for the twelve months ended 31 December 2014, an increase of 102% from MWK2.598 billion the previous year. Service revenue grew 42% from MWK28.257 billion in 2013 to MWK40.017 billion the following year and EBITDA jumped 44% year-on-year to MWK14.568 billion.

Capital investment totalled MWK11.968 billion in full year 2014 and was focused on the upgrade of TNM’s pre-paid billing systems, core network upgrades, the expansion of coverage in Lilongwe, 3G data network expansion and various other technology upgrade projects. However, in a statement on its website, TNM noted that ‘the high inflation environment, the high interest rates, the volatile exchange rate movements and a very significant increase in regulatory fees continued to drive the increase in the cost of our operations. Although the current levels of profitability are encouraging, TNM requires a significant higher level of profitability to support the sustainability of the company through future investment in infrastructure expansion projects and the upgrade of its technology.’

TNM noted that although the economic environment and increased competition in the market is expected to slow the cellco’s growth in 2015, it remains optimistic that the profitability of the business will further improve. The company has initiated various business expansion strategies, supported by significant investment in its data network, as well as infrastructure modernisation and capacity expansion.

Source: Telegeography 24 March 2015