Telekom Networks Malawi Limited Reports 158% Increase in Net Profit Post-Taxation as Cost Containment Measures Boost EBIDTA Margin
- What was the key driver for the increase in EBIDTA margin for the company in the first half of 2023?
- The key driver for the increase in EBIDTA margin for the company was successful implementation of cost containment initiatives.
Summary
- The unaudited interim financial results for the company show a significant improvement in performance or a “positive trajectory”.
- Data revenue increased by 22% and Mpamba revenue by 35%, leading to an overall increase in revenue by 17% to MK51.27 Billion in comparison to MK43.78 Billion in 2022.
- The EBITDA margin increased to 36% from 28% in 2022, primarily as a result of the company’s cost containment initiatives.
- Net profit post-taxation increased by a whopping 158%, showing a profit of MK0.78 Billion – a significant boost from the loss of MK1.34 Billion in June 2022.
- Investment in capital expenditure amounted to MK7.00 billion that primarily went towards distribution systems, network, and system expansion.
- The challenging macro-economic environment might pressurize the group’s profitability due to volatile exchange rates and inflation.
- Despite these challenges, the group plans to focus on growth and revenue, cost reductions, and improvements in overall group financial performance.
- The Directors made a decision not to declare a first interim dividend, focusing instead on the company’s recovery from previous underperformance.
Useful links
- Telekom Networks Malawi Plc (TNM.mw) HY2023 Interim Report
- Telekom Networks Malawi Limited on AfricanFinancials
- Corporate Website
About Telekom Networks Malawi Limited (TNM.mw)
Telekom Networks Malawi Limited is the major provider of telecommunication services in Malawi; offering a range of products that include post- and pre-paid airtime, interconnections, international incoming and roaming, handsets, equipment and accessories. Additional products and services include smart data packages, a mobile money wallet called Mpamba, Yanga Internet bundles; as well as voice services which include caller tune, call conference and mobile directory services. Value-added services include Me2U which allows customers to share airtime, Pasavute airtime services, and multimedia messaging services. Innovations include the introduction of 3.5g broadband services and high-speed wireless Internet access, voice and data connectivity, and video and music streaming. Telekom Networks Malawi Limited was the first mobile network operator in Malawi and was established as a joint venture between Telekom Malaysia and the then government-owned Malawi Telecommunications Limited (MTL). Telekom Malaysia sold its 60% majority stake in TNM and the telecommunication enterprise is now a wholly-owned Malawi company. Telekom Networks Malawi is listed on the Malawi Stock Exchange
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