TNM posts K8.5bn profit
Malawi Stock Exchange (MSE)-listed TNM plc has posted a profit after-tax of K8.5 billion for the year ending December 31 2016, 52 percent higher than the previous period.
In 2015, TNM posted an after-tax profit of K5.4 billion, which was four percent higher than the K5.24 billion in 2014.
Published audited financial reports show that the telecommunications company registered a 13 percent increase in subscriber base, a 31 percent increase in service revenue and invested new capital of K9.18 billion in the year-ended December 2016, which fostered sustained margins and profitability levels despite the challenging economic environment.
Reads the financial statement in part: “A high inflation environment, high interest rates and the impact of volatile exchange rates on our significant foreign currency denominated expenditure continued to drive increased costs for the operation.
“Although the current levels of profitability are encouraging, TNM requires a significant higher level of profitability to ensure the sustainability of future investment in infrastructure expansion projects and the upgrade of its technology, as well as further coverage expansion”.
The company’s board of directors have proposed a dividend of K1.3 billion or 13 tambala per share to be declared at the forthcoming annual general meeting.
TNM shares traded at K7 on the stock market.
