Profit after tax for Malawian-owned mobile telecoms operator, TNM Plc will be 150 percent higher than the same period last year, the operator said in a Trading Statement on Friday, citing performance for the first half of the year.
The half-year profit after tax represents a turnaround in operations for the Malawi Stock Exchange-listed operator which had recorded a net loss representing 133 percent year on year decline over the same period last year.
The development confirms recent projections by the company’s Chief Financial Officer Peter Kadzitche of improved profitability for the year following strong revenue performance in the first and second quarters of 2023.
“We are seeing strong growth in revenues. There are also many positive indicators in key business segments, especially mobile money, voice [GSM], and data,” Kadzitche had said.
The Chief Finance Officer said some of the positives include a return to 2017 profitability levels for most segments of the business.
“Based on the unaudited trading performance seen between March and May, we are confident of better profitability prospects by the end of 2023. TNM is a truly Malawian company that is now excelling,” he said.
During the period under review, TNM’s share price has recorded strong increases on the local bourse. The operator was trading at K30 this week up from K17.94 in April, according to daily reports by MSE.
TNM’s trajectory of recent positive developments includes appointment of new CEO Michel Hebert, which brought the pilot launch of the 5G network, significant improvements in 4G, revised pricing structures, new products such as Kapangolini bundles, all while maintaining a resilient and uninterrupted network services during the devastating tropical Cyclone Freddy.
Following the recent launch of the 5G network platform, TNM’s shareholders under the Minority Shareholders Association of Malawi expressed optimism for improved prospects in the company’s performance going forward.
TNM invested an initial U$5 million (MWK5.2 billion) to launch the 5G pilot phase.