Malawi Stock Exchange recent entrant, Airtel Malawi plc, has registered a 588.7 percent increase in profit for the year ended December 2019, a financial statement released by the company has shown.
According to the statement co-signed by its Chairman, Alex Chitsime, and Managing Director, Charles Kamoto, the company registered a profit after tax of K15.9 billion, up from K2.3 billion in the preceding year.
The firm attributes the performance to increase in operating profit, saying the previous year had one-off impact on reversal of unrealised exchange gain on unpaid liability of Malawi Towers Limited to Airtel Malawi plc.
The company recorded revenue growth of 12.8 percent, largely due to the growth in customer base which went up by 19.4 percent to 4 million.
“We enter a period of increased volatility as a result of the impact of Covid-19 on the economy and customer demand due to lower disposable income. Our focus remains to support the communities where we operate and keep our 4 million customers connected to the network.
“Our view on the medium-term opportunity for growth in Malawi has not changed as the telco sector will continue to benefit from population growth and need for increased connectivity,” reads the statement in part.
General Secretary of the Minority Shareholders Association of Listed Companies, Frank Harawa, said the performance is impressive.
“This is beyond our expectation and it is encouraging for investors to invest in the company because it has surpassed market and industry competitor,” Harawa said.
Airtel Malawi plc listed on the stock exchange in January 2020.