Telekom Networks Malawi (TNM) profits for the period ended June 30 2013 rose 38 percent compared to the prior corresponding period, indicates the mobile service provider’s first half results.
The results signed by TNM managing director Willem Swart and board chairperson Matthews Chikaonda, published in The Nation on Tuesday indicates that TNM recorded a net profit after taxation of K558 million (about $1.4m) for the six months period ended June 30 2013 which represents up from K405 million (about $1.1m) recorded in the first six months of 2012.
“The company maintained its high growth momentum in the first half of the year with the service revenue increasing by 59 percent and subscriber growth by 17 percent, from the corresponding prior period ended June 2012. The actions taken to improve the revenue and reduce expenditure produced positive results.
“The higher interest rates in the financial markets continued to have a major impact on the Net profit of the company. The total financial charges of K1440 million for the period represents an increase of K739 million from the corresponding year in 2012,” reads the results in part.
TNM directors have thus approved a first interim dividend of K301.2 million which is equivalent to three tambala per share payable on September 27.
In 2012, TNM paid a final dividend of K301.2 million which is an equivalent of three tambala per share which totaled K702.8 million for 2012.
Last year, the company’s overall profit after tax declined 49 percent to K692 million on service revenue growth of 43 percent according to the service providers annual report.
Swart in the annual report noted that the service provider continued to improve their network quality and network coverage and invested K8 billion in infrastructure mainly in redundancy system for the core network and billing systems.
The annual report further noted that in 2012 TNM’s market share grew to 45 percent from 42 percent in the previous year, and subscriber base rose by 24 percent to 1.9million.
The Report indicates that gross profit rose from K7.87 billion in 2011 to K9.3 billion in 2012 while profit fell from K1.36 billion to K690 million.
In 2007 TNM realised K1.45 billion profit after tax, marginally rose to K1.53 in 2008, fell to K1.22 billion in 2009, K1.18billion in 2010 fell to K1.36 billion in 2011 before hitting K692 million in 2012.