Malawi Stock Exchange-listed integrated ICT and mobile phone network services provider TNM plc has posted a K1.34 billion loss during the first half of this year compared to a profit of K4.51 billion during the same period last year.
This has been revealed in the company’s financial statement published yesterday.
In the statement, TNM attributes the performance to an increase in operating costs which rose by 81 percent due to a number of economic glitches.
“Net finance costs increased by 81 percent due to foreign currency accounting losses recorded because of the devaluation of the Malawi Kwacha in May 2022,” the statement reads.
Consequently, the company has not declared dividends to its shareholders.
During the same time last year, TNM board of directors approved a K1.8 billion dividend, representing 8 tambala per ordinary share.
During the period under review, revenue growth was at 1 percent as mobile data revenue grew by 11 percent, Mpamba revenue grew by 23 percent, while voice revenue decreased by 11 percent.
The company invested K9.31 billion in capital expenditure during the period which catered for distribution systems, network and system expansion, for future use at the back of growing data usage.
On outlook, the telecommunications says the operating environment will remain challenging on account of volatile exchange rates, foreign currency scarcity, and persistent inflationary pressure.
Albeit posting a loss, the board says it remains optimistic that the company will have a positive performance during the remaining half.
“The group will continue developing and implementing initiatives to drive customer growth, revenue growth, deliver efficiencies in cost, and improve overall group financial performance,” the statement adds.
TNM is one of the dual major players in the mobile telecommunications and mobile money sector.
Due to economic hiccups, the company in August revised upwards prices of its products and services by 20 percent.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.