TNM warns of profit drop
Malawi's TNM has issued a trading update warning of profits up to 95% down on the previous corresponding period.
TNM said in a statement this week: “Further to the previous trading update issued in the media on 17 December, Telekom Networks Malawi Limited accordingly advises that the Profit after Tax for the year ending December 2012 is expected to be 95% to 55% lower than the previous corresponding period, instead of approximately 20% to 30% as earlier reported.”
The telco said this was largely due to foreign exchange losses incurred due to the sharp devaluation of the Malawi Kwacha in the second quarter of the year, coupled with the continued depreciation of the currency during the third and fourth quarters of the year and the resultant increase in finance charges.
TNM’s annual financial statements for the period will be published by end March.