KEY FINANCIAL HIGHLIGHTS
|SERVICE REVENUE 8% growth in Service Revenue to||MK 44,064 Million|
|EBITDA 13% increase in EBITDA to||MK 17,856 Million|
|NET PROFIT 3% decrease in Profit After Taxation to||MK 6,712 Million|
|INFRASTRUCTURE INVESTMENT||MK 7,372 Million|
|ARPU 11% growth in Average Revenue Per User (ARPU) to||MK 1,814|
|EARNINGS PER SHARE 3% decrease in Earnings Per Share to||MK 0.67|
The Board is pleased to announce the unaudited interim financial results for the Group for the six months period ended 30 June 2019.
In 2018, the company registered TNM Mpamba Limited as a wholly owned subsidiary of Telekom Networks Malawi Plc. TNM Mpamba Limited started its operations on 1 January 2019. The results of TNM Mpamba Limited are consolidated in the results of Telekom Networks Malawi Plc as at 30 June 2019.
The Group registered 8% growth in service revenue to MK44,064 million (2018: MK40,764 million). The EBITDA margin increased to 40% (June 2018: 38%). The increase in EBITDA was due to disciplined expenditure management initiatives taken by the Group and the effects of IFRS 16 Leases application. Net financing costs increased to MK2,180 million (June 2018: MK1,295 million) which includes foreign exchange losses of MK79 million (June 2018: MK24 million). The increase in net finance costs by 68% was due to the effects of IFRS 16 Leases application which has resulted in some operating expenses being reported under finance cost.
Profit after taxation decreased by 3% to MK6,712 million (June 2018: MK6,942 million). The decrease in net profit was due to increase in depreciation expense resulting from investments made in 4G and U900 technology over the past two years to position the Group for the future as a full ICT operator.
TNM invested MK7,372 million in capital expenditure during the period (June 2018: MK10,579 million) in network and systems catering for expansion, improvement and future use as data needs grow.
The Group continues with its strategy to become the preferred ICT provider in Malawi as it focuses on seamless customer experience, smart channel management and investment in appropriate technologies. Management will continue with cost efficient initiatives to protect margins and profitability.
The Directors have declared a first interim dividend for the financial year ending 31 December 2019 of MK2,510 million, equivalent to 25 tambala per share, payable on 27th September 2019 to those shareholders appearing in the register of the Company as at the close of business on 13th September 2019. The register of members will be closed from 16th September 2019 to 18th September 2019 both dates inclusive.
|George Partridge||John M. O’ Neill|
|Chairman||Chairman Board Audit Committee|