Forex losses dampen Airtel Malawi H1 profit

Airtel Malawi plc has reported a negligible 0.6 percent drop in profit after-tax to K11.346 billion in the half year ended June 30 2021 from K11.415 billion during the corresponding period last year.

The Malawi Stock Exchange-listed firm has attributed the slight drop to a foreign exchange loss of K4.039 billion due to the weakening of the kwacha.

In its published financial statement yesterday, Airtel Malawi said the impact of foreign exchange loss during the same period last year was K52 million.

The company has, however, generated K59.3 billion in revenue compared to K51 billion recorded during the same period last year.

Reads the statement in part: “Revenue growth of 16.3 percent was largely driven by the growth of our customer base, which was up by 30.3 percent to 5.8 million.

“Revenue growth continued to be broad -based with voice up by 15.1 percent, data up 17.1 percent and other revenue up 21.4 percent.”

The statement shows that during the review period, the firm generated K33.3 billion from voice calls and K21.232 billion from data, up from K29.946 billion and K18.131 billion generated during the same time last year.

Net debt declined to K31.834 billion during the review period from K40.4 billion as at December 31 2020.

During the period, the firm extended the maturity of $40 million (K32.8 billion) loan, which was due this month.

Airtel Malawi plc says the economy and the company are exposed to continued impact of Covid-19, kwacha depreciation and scarcity of foreign currency.

Airtel Malawi plc listed on the 16-counter MSE on February 24 2020. It has a market capitalisation of K22.091 billion.

As of yesterday, its share price traded at K12.69 per share.