One of the country’s telecommunication service providers, Airtel Malawi, has reported a K21.3 billion profit after tax for the first half of 2024.
This is according to a published financial statement released by the company Wednesday.
The profit-after-tax represents a 16.7 percent rise from K18.2 billion reported during a similar period last year.
According to the statement, the growth was primarily driven by strong operating performance, which contributed to a 25.9 percent increase in Earnings before interest, taxes, depreciation and amortisation.
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The Malawi Stock Exchange-listed telco saw its revenue growing by 37.1 percent to K117.8 billion driven by broad-based growth across all business segments, reflecting the resilient demand for essential services.
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“Resilient demand for both voice and data services supported a 29.2 percent growth in voice revenue, and a 53.7 percent growth in data revenues,” the statement reads.
The company further indicates that the medium-term growth opportunity in Malawi remains attractive, with the telecommunication sector continuing to benefit from population growth and an increased need for connectivity.
“We remain focussed on executing our strategy to increase mobile penetration in Malawi through continued investment into under-served rural markets and driving increased data coverage to further enhance the digitalisation of the Malawian economy,” the statement adds.
In an interview, Minority Shareholders of Listed Companies General Secretary Frank Harawa said there are mixed reactions among shareholders following the delay in releasing revised financial statements by the company.
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“…we are also mindful of the massive share price loss, which has robbed shareholders of capital gains. However, should this performance continue then, shareholders’ trust in this counter will be regained,” Harawa said.
In a separate interview, Misalico Central Region Chapter Chairperson Purity Paschal Chitalo said the growth in earnings is a good sign towards restoring shareholders’ confidence in the counter.
“We expect growth to continue. Hopefully, this will culminate in the rise of share price as well,” Chitalo said.
