TNM | 2014 abridged financial results

By Published On: March 23rd, 2015Categories: Corporate announcement

The Directors of Telekom Networks Malawi Limited are pleased to release the abridged financial results for the year ended 31 December 2014. Below are excerpts from the report:

Key achievements in 2014

  • 20% growth in subscriber base
  • General improvement in network quality
  • Acquisition of ISP Business from BURCO Electronic Systems Limited
  • Launch of SMARTDATA

Key financial highlights

  • 42% growth in service revenue to MK 40,017 million
  • 44% increase in EBITDA to MK 14,568 million
  • CAPEX investment additions of MK 11,968 million
  • 102% increase in net profit to MK 5,243 million


The company achieved strong levels of subscriber and Service Revenue growth during 2014 which resulted in a significant increase in profitability. These achievements were supported by the successful implementation of various expansion projects and cost management strategies.

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.

The company was successful with the actions taken to improve the Revenue streams and the cost management projects which resulted in the improvement of the EBITDA margin to 36% in 2014 from 35% in 2013. The Net Financing Cost decreased to MK 2,887 million (2013 MK 3,128 million) which includes Foreign Exchange Losses of MK 420 million (2013 MK 633 million). The Net Profit after Taxation for 2014, increased by 102% to MK 5,243 million, from MK 2,598 million in 2013.

TNM invested in Capex Expenditure of MK 11,968 million in 2014 (2013: MK 3,085 million) which mainly consisted of the upgrade of the Prepaid billing systems, the Core network upgrades, the Lilongwe network coverage expansion, 3G data network coverage expansion and various other technology upgrade projects.

The company acquired the ISP business and related infrastructure assets from Burco Electronic Systems Limited and will use these investments as the foundation to develop the TNM Business Services division which will focus on the needs of our Enterprise and SME customers.


Although the levels of growth in the business are expected to slow down in 2015 as a result of the economic circumstances and competition in the market, we remain optimistic that the profitability of the business will further improve. The company has initiated various business expansion strategies, supported by significant investment in the data network, network modernization and capacity expansion.


Total Dividends of MK 2,408 million (MK 0.24 per share) are proposed for the period ended 31 December 2014:

  • K 702 million | 7t per share was declared and paid in September 2014.
  • K 702 million | 7t per share was declared in December 2014 and paid in January 2015.
  • K 1,004 million | 10t per share to be declared at the upcoming AGM*.

*The Directors propose a Final Dividend of 10 (ten) Tambala per share out of the profits of the company for the year ended 31 December 2014, to be declared at the fourthcoming Annual General Meeting.


Mathews Chikaonda
Willem Swart
Managing Director

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