Malawi Stock Exchange -listed Telekom Networks Malawi (TNM) posted a loss of K4.76 billion in 2023, the company’s published financial statements reveal.
This represents a 170 percent increase in the loss from the K1.76 billion loss the company reported in 2022.
This follows the company’s annual general meeting (AGM) which was conducted in Blantyre on Tuesday.
At the AGM, the board announced that the company will not declare dividends due to the development.
However, the business reported a revenue growth of 15 percent to K110.48 billion despite escalated operating costs due to rising inflation and devaluation of the local currency.
Its board chairperson Ted Sauti-Phiri said the local economy yet again faced multiple challenges and hardships that resulted in continued social challenges for the people and the business.
“Our business was challenged by the cumulative 72 percent currency devaluation and the impact of the wars in Ukraine and the Middle East coupled with the dry spells resulting from the El-Nino weather phenomenon.
“To keep up with the pace of digital transformation and renewed operational efficiencies and to maintain our market position as a network of choice during the year, we invested K14.69 billion in infrastructure. We are resolute in our commitment to invest in infrastructure in line with the global industry trends in order to achieve digital transformation. We expect the fortunes to turn around and post a K2 billion profit as reported in our recent trading statement,” Sauti-Phiri said.
One of the company’s shareholders Joe Maere said TNM’s performance, though not satisfactory, was understandable especially that it was affected by macroeconomic developments.
“It is painful especially that we will not receive a dividend and when a listed company is posting loses, the share price drops which is also a capital loss.
“We expect the board and management to be proactive to employ policies that will cushion its profitability from negative macroeconomic developments,” Maere said.
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