TNM H1 net profit jumps 46%, customer base up 14%
Telekom Networks Malawi Plc, the wholly-owned Malawian integrated mobile network and ICT services provider is proud to announce a strong performance in the first half of the year ended 30 June 2018, with net profit and customer base rising by 46% and 14% respectively.
Net profit after tax for the integrated mobile network and ICT service provider rose to MWK6.9 billion (U$9.5 million) up from MWK4.7 billion (U$6.5 million) during same period last year (2017), representing an increase by 46%.
During the same period, the mobile network and ICT services operator’s customer base grew steadily by 14 percent to rise above the 3.5 million previously reported.
TNM Plc also remained on course to consolidate its position as a leading mobile internet and network service provider with an additional investment of MwK10.6 billion (U$14.4 million) in 4G/4.5G/LTE mobile technology, upgrading previous 2G only sites to 3G, new coverage sites, quality improvement sites and a new operating platform for Mpamba, TNM Plc’s mobile money service.
In a statement accompanying the half-year results, signed jointly by Board Chairmen of Board and Audit Committee George Partridge and John Sean O’Neil respectively, TNM Plc says it achieved modest revenue and subscriber growth which enabled it to improve Earning Before Interest, Tax, Depreciation and Amortization (EBITDA).
“The company was successful with its initiatives to improve revenue streams and manage costs in the first half of the year. The company improved the EBITDA margin to 38% (June 2017:33%),” reads the statement.
It notes that stable macro-economic conditions helped TNM Plc to focus on improving profitability that will support current and future investment in the ICT sphere it operates.
“4G/ 4.5G/ LTE technology positions the company as a leading ICT provider employing leading edge technology to offer services beyond traditional GSM mobile telephony,” it says.
TNM says it expects the current business environment to continue in the second half of 2018, and it will in turn continue with cost management initiatives and strategies aimed at expansion and diversification of its revenue base.
In March 2018, TNM Plc announced a net profit of MWK13.10 billion (U$17.88 million) for 2017, which was 60 percent higher than that of 2016. The company attributed its profitability to revenue from voice calls, but reported an increasing contribution from data services, enterprise service and mobile money.
TNM Plc, listed on the Malawi Stock Exchange (MSE), is majority-owned by Press Corporation Plc, the diversified Malawian conglomerate which holds 41.31%. Others are Old Mutual Life Assurance (23.65%), Magni Holdings (5.66%), Nico Life Insurance (4.88%) while the general public through the stock market holds 24.50%.