The company achieved high levels of service revenue and moderate subscriber growth during the first six months of 2017 which enabled it to increase EBITDA and maintain margins and profitability levels.
Macro-economic conditions improved during the first six months of 2017 with reducing inflation and interest rates, and stable exchange rates. Against this background, management remain focused on maintaining current levels of profitability to support future investment as the company evolves into a full Information and Communications Technology (ICT) business.
The company has been successful with initiatives to improve revenue streams and manage costs in the first half of the year. The company maintained its EBITDA margin at 33%. Net financing costs decreased to MK1,497 million (June 2016: MK2,188 million) which includes foreign exchange losses of MK25 million (June 2016: MK427 million). Net profit after taxation increased by 72% to MK4,750 million (June 2016: MK2,766 million).
TNM invested in capital expenditure of MK12,332 million in the first half of 2017 (June 2016: MK3,814 million) which mainly consists of 4G mobile technology, Lilongwe and Blantyre quality improvement sites and Northern region coverage sites. 4G technology positions the company as a leading ICT provider employing leading edge technology to offer services beyond traditional GSM mobile telephony.
The company expects the challenging business environment to persist in the second half of 2017 although marginally better than the previous year. The company will continue to implement cost management initiatives and strategies aimed at expansion and diversification of its revenue base.
The Directors have declared a first interim dividend for the financial year ending 31st December 2017 of MK1,506 million, equivalent to 15 tambala per share, payable on 1st September 2017 to those shareholders appearing in the register of the Company as at the close of business on 18th August 2017. The register of members will be closed from 21st August 2017 to 23rd August 2017 both dates inclusive.
BY ORDER OF THE BOARD