TNM records K1.8 billion net profit

Leading Malawian telecommunications company, TNM, has revealed it continues to realise an increase in net profit from operations.

In the first half of 2014, the company reported a significant jump by 230% in net profit after tax, published results for the six months ended June 30, 2014.

A statement accompanying the half-year results shows that the premier mobile telecoms network provider has beaten its first half-year results for the same period last year by more than half.

It shows that the company’s net profit increased from K558 million during the first six months of 2013 to K1.84 billion during the same period this year.

TNM attributes the improvement to acquisition of new subscribers and general network improvement.

“These infrastructure investments resulted in a significant improvement in network quality and an increase in the rate of new subscriber acquisitions,” reads the statement co-signed by Managing Director Willem Swart and Chairman Mathews Chikaonda.

It says the company has maintained high growth momentum with service revenue increasing by 48% during the first six months. This momentum is expected to continue improving, read the statement.

TNM also highlights the coverage expansion project in its Lilongwe region and upgrading of internet (3G) services as developments during the last six months that should resulted in a more resilient network going into the future.

TNM directors have approved an interim dividend of K702 million, representing 7 tambala per share and payable by September 26, 2014 to registered shareholders. In 2013, TNM paid a total dividend of K1.1 billion to shareholders.

Going forward, TNM has pledged continued commitment to a sustainable and profitable business and would continue to invest in infrastructure.

TNM’s Managing Director has repeatedly stated that telecommunication operators must produce sustainable profits as it is the only source of funding to ensure the sustainable growth in infrastructure and new technologies.TNM is the only telecommunications company listed on the Malawi Stock Exchange.