TNM H1 net profit up 46%

Post was last updated: September 7, 2018

By William Kumwembe:

IMPRESSED—Some board members during the previous AGM

Net profits for integrated mobile network and ICT services provider, TNM Plc, surged by 46 percent in the first half of the year ending June 30 2018.

Net profit after tax for TNM rose to K6.9 billion ($9.5 million) up from K4.7 billion ($6.5 million) during the same period last year.

TNM said its customer base also went up by 14 percent during the period under review, to rise above the K3.5 million previously reported.

In a statement accompanying the half-year results, jointly signed by chairpersons of Board and Audit Committee, George Partridge and John Sean O’Neil, respectively, TNM Plc says it achieved modest revenue and subscriber growth which enabled it to improve Earning Before Interest, Tax, Depreciation and Amortisation (EBITDA).

“The company was successful with its initiatives to improve revenue streams and manage costs in the first half of the year. The company improved the EBITDA margin to 38 percent (June 2017:33 percent),” reads the statement.

It notes that stable macro-economic conditions helped TNM to focus on improving profitability that would support current and future investment in the ICT sphere it operates.

“4G/ 4.5G/ LTE technology positions the company as a leading ICT provider employing leading edge technology to offer services beyond traditional GSM mobile telephony,” it says.

TNM says it expects a favourable business environment to continue in the second half of 2018, and it would in turn continue with cost management initiatives and strategies aimed at expansion and diversification of its revenue base.

In March 2018, TNM announced a net profit of K13.10 billion [$17.88 million] for 2017, which was 60 percent higher than that of 2016.

The company attributed its profitability to revenue from voice calls but reported an increasing contribution from data services, enterprise service and mobile money.

TNM, listed on the Malawi Stock Exchange (MSE), is majority-owned by Press Corporation Plc, the diversified Malawian conglomerate which holds 41.31 percent.

Other shareholders include Old Mutual Life Assurance with 23.65 percent, Magni Holdings with 5.66 percent and Nico Life Insurance with 4.88 while the public holds 24.50 percent.

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