Airtel revises 2023 loss upwards
Telecommunications operator Airtel Malawi plc is believed to have posted a loss of between K15.1 billion and K15.7 billion in 2023, which is 143 percent less than its profit in 2022.
The Malawi Stock Exchange-listed mobile company said in a revised trading statement signed by company secretary Hlupikire Chalamba that the variation of the projection is a result of re-assessment of some of the accounting treatments.
The company, which posted a profit of K36.9 billion in 2022, said the variation is a result of a re-assessment of the accounting treatment for the United States dollar-indexed tower lease contracts following the 44 percent devaluation in November 2023.
In the second quarter, the telecommunications firm revised its annual financial statements along with the restatement of the financial statements for the previous year ended December 31 2022.
In an interview, Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said Airtel Malawi plc’s move reflected challenges faced by the company in the past year.
“Investors should stay informed and be attentive to any forthcoming trading statements as these will provide valuable insights into Airtel Malawi plc recovery trajectory,” he said.
In a separate interview, Minority Shareholders Association of Listed Companies secretary general Frank Harawa described the foreign exchange loss as “a serious matter to shareholders that have affected the telecommunications sector that companies should look into by proper planning.”
But MSE chief executive officer John Kamanga is on record having described Airtel Malawi plc’s decision as proactive, saying it provided timely updates and an opportunity to fix the situation.
He said: “I think what Airtel has done is good for corporate governance because it has communicated the issue timely instead of waiting until June.”
Airtel Malawi plc, which was listed on the 16-counter MSE on February 24 2020, as of Wednesday was trading at K44.97 per share from K60 in January 2024
Airtel Malawi plc lost K56 billion following a 66 percent kwacha loss in value in 2023.
