TNM’s profit increases slightly
From FRANK PHIRI in BLANTYRE, Malawi
Profit was up to K 5,4 billion (US$7,88 million), representing a 3 percent increase.
TNM noted however it experienced high finance costs due to volatile exchange rates on foreign currency expenditures, resulting in a foreign exchange rate loss of K1,49 billion.
The telco said net financing or borrowing cost increased to K4,4 billion from K2,8 billion in 2014, and the figure included a foreign currency loss of K1.49 billion, up from K420 million the previous financial year.
“A high inflation environment, high interest rates, volatile exchange rates with considerable foreign currency expenditure continues to drive increased costs for the operation,” read a report co-signed by CEO Douglas Stevenson and Chairman Mathews Chikaonda.
In 2015, TNM completed an outright acquisition of Malawi’s leading internet service provider, Burco, to become an integrated mobile and ICT company.
The Malawi Stock Exchange (MSE)-listed TNM said it needed to maintain profitability to sustain future investment in infrastructure expansion projects and technology upgrades.
It proposed to give shareholders a total dividend of above K3 billion at the rate of 30 tambala per share, up from 19 tambala.
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