Airtel profit soars to K37bn, outlines growth strategy

Airtel Malawi plc says it seeks to increase coverage to rural areas and invest in network capacity in its bid to meet rising customer demands.

The company’s managing director Charles Kamoto said this on the sidelines of the firm’s 24th annual general meeting held at Mount Soche in Blantyre on Wednesday.

He said in the year-ending December 2022, Airtel Malawi plc posted a profit- after-tax of K36.9 billion on the back of an increase in its customer base and cost containment measures.

Said Kamoto: “The growth of our customers base by five percent [percent year-on-year] led to a 16 percent revenue growth which was pivotal to our profits, coupled with cost containment to ensure the company continues to be profitable and viable to the future.

“We continue to invest as the demands of customers are increasing by day.”

Commenting on the uncertainty in the forex market, Kamoto said the firm continues to find ways of managing this to ensure that they mitigate the impact of this risk to the business.

“We diversify our source of forex so that we can continue to invest in the network,” he said.

During the year under review, the company recorded a profit-after-tax of K36 billion, up from the previous year’s K32.3 billion.

The company grew its customer base by 4.7 percent year on year, ending with 6.54 million customers with data customers growing by seven percent year-on-year to 2.4 million customers.

This translated to a 16.5 percent revenue growth of K153.5 billion, up from the previous year’s K131.8 billion.

The company directors have since proposed a final dividend of K27.5 billion equivalent of K2.50 per share for the year ended December 31 2022, down from the previous year’s K2.95 per share amounting to K32.

“This is not substantial. What is important is that while profit had gone up, the dividend is reflective of our agenda we have on the business which is to continue to expand and invest in new technologies so that the company meets the immediate needs of shareholders and growth of business which is also to the interest of shareholders,” said Kamoto.

Meanwhile, the firm’s board chairperson Alex Chitsime has retired after serving for 11 years.

“I am leaving a happy man. I am sure the company is in good hands to take the company to greater heights,” he said.