TNM H1 profit jumps 46%, customer base climbs 14%
TNM plc, a wholly-owned Malawian integrated mobile network and ICT services provider, has reported a 46 percent jump in net profit and a 14 percent increase in customer base.
Published financial results for the half-year ending June 30 2018 show that profit after-tax for the Malawi Stock Exchange (MSE)-listef firm increased to K6.9 billion from K4.7 billion during the same period last year.
TNM’s customer base increased to about 3.5 million, the financial statement show.
In a statement accompanying the half-year results jointly signed by TNM plc board chairperson George Partridge and chairperson of audit committee Sean O’Neil, the company says it achieved modest revenue and subscriber growth which enabled it to improve earnings before interest, tax, depreciation and amortisation (Ebitda).
Reads the statement in part: “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 percent [June 2017:33 percent].”
The statement notes that stable macro-economic conditions helped TNM to focus on improving profitability that will support current and future investment in the information and communication technology ( ICT) sphere it operates.
“[The] 4G/4.5G/ Long-Term Evolution [LTE] technology positions the company as a leading ICT provider employing leading edge technology to offer services beyond traditional GSM mobile telephony,” reads the statement.
Looking forward, TNM expects the current business environment to continue in the second half of 2018, and the company will continue with cost management initiatives and strategies aimed at expansion and diversification of its revenue base.
In the year ended December 2017, TNM posted a profit after-tax of K13.1 billion, 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 is majority-owned by dual-listed conglomerate Press Corporation plc, which owns 41.31 percent. Other shareholders are Old Mutual Life Assurance Company Limited (23.65 percent), Magni Holdings (5.66 percent), Nico Life Insurance Company (4.88 percent) and the public holds 24.5 percent.
During the year, TNM made an additional investment of K10.6 billion 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’s mobile money service.
