By Benadetta Chiwanda Mia:
Telecommunication companies listed on the Malawi Stock Exchange (MSE) have showcased remarkable recovery in 2024, projecting a combined profit of over K57 billion from a loss-making position in the preceding year.
A trading statement for one of the companies, Airtel Malawi plc, for the financial year ending December 31, 2024, indicates a projected profit after tax between K43.1 billion and K47.7 billion.
This translates into a 380 percent to 409 percent rise in profit when compared to a loss after tax of K15.4 billion the company reported in 2023.
Similarly, TNM anticipates a profit after tax ranging between K8.14 billion and K9.1 billion for 2024 reflecting a growth of 271 percent to 291 percent when compared to the K4.7 billion net loss recorded in 2023.
In an interview, Minority Shareholders of Listed Companies General Secretary, Frank Harawa, described the performance as encouraging for shareholders, signaling that the companies have moved past challenging times.
“Following a difficult year in 2024 due to devaluation of the Kwacha in November 2023, we saw TNM’s share price drop from K26 to as low as K10 per share. Airtel’s share price also plummeted from nearly K100 to K45. It was a tough period. However, mid-year results for 2024 were promising and helped reverse the downward trend, sparking an increase in the share prices.
“We expect dividends from these companies, provided there’s no further devaluation. If stability is maintained, share prices are likely to continue their upward trajectory, which is exciting for shareholders,” Harawa said.
Stockbrokers Malawi Limited Equity and Stock Market Analyst Kondwani Makwakwa said the telecommunications sector’s robust recovery in 2024 was due to enhanced financial stability.
“Other sectors performed well too, boosting investor confidence and increasing the likelihood of dividends. As the market rebounds, the outlook for 2025 appears promising, though the performance of the Malawi Stock Exchange will depend on sustaining a favorable macroeconomic environment to maintain this momentum,” Makwakwa said.
Economic expert Edward Chilima commended the board but called for careful analysis of the results.
“While the performance looks good over a five-year period, it’s important to analyse it in real terms, considering inflation and other factors,” Chilima said.
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