Wednesday, June 29, 2022
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
Advertisement
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business

Kwacha fall hits telecoms firms

by Grace Phiri
13/05/2022
in Business, Front Page
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

The continued depreciation of the kwacha has not spared players in the telecommunications industry as their annual profits have been affected by foreign exchange losses, figures show.

An analysis of the 2021 published financial statements for Malawi Stock Exchange-listed Airtel Malawi plc and TNM plc shows that the two firms registered an increase in forex losses during the year under review.

Airtel Malawi plc financial results for the year ended December 31 2021 show that during the year under review, the company lost K5.6 billion on the back of the kwacha depreciation against the dollar.

During the previous year, the impact of forex loss was at K3.6 billion.

TNM plc, on the other hand, recorded a 16 percent increase in depreciation expenses to K16.3 billion from the previous year’s K14.05 billion.

In a published financial statement yesterday co-signed by Airtel Malawi plc board chairperson Alex Chitsime and managing director Charles Kamoto, the firm said the country’s economy and company are exposed to the continued impact of Covid-19, kwacha depreciation and scarcity of foreign currency.

Reads the statement in part: “We continue to focus on investing more and growing customers and revenue followed by containing cost and diversifying currency sourcing to mitigate the exposures.”

TNM plc, in its financial statement for the year ended December 31 2021 co-signed by board chairperson George Partridge and audit committee chairperson Lekani Katandula, said the volatile exchange rates and forex scarcity will continue to increase the cost of toperations.

“The macro-economic environment is expected to remain challenging, putting pressure on revenue and margins,” reads the statement.

The kwacha has consistently depreciated against major trading currencies since the second half of 2020 on account of the persistent shortage of forex although the Reserve Bank of Malawi (RBM) official dollar and Malawi kwacha middle exchange rate showed some stability around K823 in the first quarter of 2022.

An industry expert, who spoke on condition of anonymity, said the depreciation expenses are due to rising capital expenditure in network transmission, systems catering for capacity expansion, improvement and future use as customer base and data usage grow.

In its February 2022/23 National Budget response, Malawi Confederation of Chambers of Commerce and Industry observed that Covid-19 continues to reverse macroeconomic fundamentals, most notably the weak foreign reserves position.

Airtel Malawi plc after-tax profit went up to K32.3 billion while that of TNM plc was recorded at K9.69 billion.

Previous Post

Police officers march to restore public trust

Next Post

Sugar shortage pushes up prices, consumers worried

Related Posts

Front Page

Mwanamvekha wants his case dismissed

June 28, 2022
Feature of the Week

Usisya Health Centre cries

June 28, 2022
Business News

Tobacco firm pushes for legislation review

June 28, 2022
Next Post

Sugar shortage pushes up prices, consumers worried

Discussion about this post

Opinions and Columns

People’s Tribunal

Two years later and we are still singing same song

June 26, 2022
Big Man Wamkulu

Wife’s relatives have taken over my house

June 26, 2022
My Thought

Stop cyber harassment

June 26, 2022
Candid Talk

Baby gender preference and disappointments

June 26, 2022

Malawi-Music.com Top10

Trending Stories

  • ACB cleared Sattar contract—Documents

    0 shares
    Share 0 Tweet 0
  • Britain squeezes Zuneth Sattar

    0 shares
    Share 0 Tweet 0
  • MET says cold, wet weather will continue

    0 shares
    Share 0 Tweet 0
  • K243bn Malawi trade deal on rocks

    0 shares
    Share 0 Tweet 0
  • Mwanamvekha wants his case dismissed

    0 shares
    Share 0 Tweet 0

  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2022 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.