TNM | 2015 Annual financial report
The Directors of Telekom Networks Malawi Limited have released the Company’s annual report for the year ended 31 December 2015.
Below are extracts from the Chairman’s letter and financial highlights.
Chairman’s letter to Shareholders
TNM’s profit after tax rose 4% to K5.414bn in 2015. This is modest, but taken in the context of Malawi’s economic environment of high inflation, interest rates and devaluing currency, it is a very acceptable performance. More so given that the company’s EBITDA margin, a core measure of profitability, basically remained just below 2014 levels at 35%.
Service revenue grew by 24% to K49.4 billion and margins remained the same but profits did not match service revenue growth. The reason why can be pin-pointed in the K1.496 billion of foreign exchange losses, without which interest on debt servicing would have remained static and profits correspondingly higher. Again, the importance of having a stable economic climate with stable or relatively stable inflation and exchange rate regime is underlined. Inflation and devaluations erode profits.
As a result of currency losses overall finance charges (the aggregate of interest paid and exchange losses) grew by 51% over the previous year. This is double the growth in revenues…
Key financial performance indicators:
|Profit after tax||K’bn||+3%||5.41||5.24|
Download full report on link below:
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Telekom Networks Malawi Limited (TNM.mw)Share price: 2,846.00 Tambala (0.00 | 0.00% – 02/06/23)
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