Players in the telecommunications sector posted good tidings in the first half of 2023, defying the odds in an environment where most sectors have been hard hit by the effects of Cyclone Freddy and other economic shocks.
The performance has been solidified by projected substantial increases in post-tax profits for two listed telecommunication companies, Airtel Malawi and TNM.
In a statement, TNM says it anticipates a 150 percent surge in its profit-after-tax while Airtel Malawi forecasts a growth in profit-after-tax ranging between 100 and 120 percent.
During the first half of last year, TNM plc made a post-tax loss of K1.34 billion, primarily attributed to amplified financial and operational costs compounded by a 25 percent devaluation of the local currency.
Speaking during an annual general meeting (AGM) recently, TNM Board Chairperson Ted Sauti Phiri said upswing in this year’s profits can be attributed to expedited efforts to rectify losses, bolstered by a resilient business model.
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“Our philosophy revolves around excelling in all aspects under our control. It is evident that our business is thriving, and we are on track to issue dividends, pending macroeconomic performance,” Phiri said.
During the first half of last year, Airtel Malawi reported a profit-after-tax of K8.9 billion, a decline from the K11.3 billion profit made in the corresponding preceding period.
Therefore, the projected profit surge for this year signifies a substantial recovery for the company.
At the company’s AGM, Airtel Malawi Managing Director Charles Kamoto underscored the company’s commitment to fulfilling the demands of existing customers and expanding its customer base.
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“We are observing heightened demand for our network coverage, especially in previously uncovered rural areas. Our response to this trend undoubtedly translates to increased future profitability for the company,” Kamoto said.
The local economy has lately been facing many challenges including forex shortages, fuel scarcity and rocketing commodity prices.
Most businesses have been affected.
