TNM’s, one of Malawi’s mobile services provider, subscriber base has gone up by 17 percent, with its Service Revenue increasing by 59 percent, according to results for the first half of 2013.
TNM Chairperson, Matthews Chikaonda says the actions they took to improve the revenue and reduce expenditure have produced positive results with operating profit increasing significantly.
“The company maintained its high momentum in the first half of the year, with Service Revenue increasing by 59 percent and subscriber growth by 17 percent, from the corresponding prior period ended June 30, 2012,” said Chikaonda.
TNM recorded a Net Profit after taxation for the six months ended June 30 2013 of K558 million, representing 38 percent increase from K405 million, as recorded in the first half of 2012.
Chikaonda claims that high interest rates in the financial markets also continued to have a major impact on the company’s Net Profit.
“The total finance charges of K1,440 million for the period (inclusive of the foreign Exchange losses of K220 million), represents an increase of K739 million from the corresponding period in 2012,” he says.
He furthers says that the company will continue the conservative approach to limit new Capital expenditure and to repay the outstanding debt, which according to him, should reduce the exposure of the business to future foreign exchange rate fluctuations and high interest rates.
“The economic outlook seems stable for the rest of the year with declining interest rates and modest movements in the foreign exchange rates. The Performance of the company is expected to continue to improve and exceed the results of the previous financial year,” Chikaonda says.
Other key achievements in first half of 2013, include the launch of TNM Mobile Money-Mpamba and general improvement in Network Quality.
Meanwhile, the company’s directors have approved a first interim dividend of K301.2 million, equivalent to three tambala per share, payable on September 27 this year to shareholders appearing in the register at the close of business on September 13, 2013.
The register of members of will be closed from September 13 to 18, according to Chikaonda.