By Frank Phiri, contributor:
Malawi Stock Exchange-listed integrated mobile phone and ICT services provider, Telekom Networks Malawi (TNM) plc, has said it expects its net profit for the first half of 2024 to increase by 201 percent to K2.35 billion.
TNM said in an updated trading statement published on Wednesday that profit-after-tax for the half year ended June 30 2024 would be between K2.192 billion and K2.35 billion.
“After further reviews, profit- after-tax for the half-year ending June 30 2024 is expected to be between K2.192 billion and K2.350 billion due to improvements in revenue,” reads the trading statement signed by company secretary Chisomo Governor.
The latest performance reflects a return to solid profitability for the telco as it recovers from cycles of distressed profit trajectory.
In its annual report for the financial year ended December 31, 2023 TNM Plc attributed its losses to the challenging macroeconomic conditions characterised by devaluations, high interest rates and inflation of over 30 percent.
Market analyst Saidi Jackson describe TNM’s first half net profit forecast as a signal that a return to profitability by the telco is possible by December 31 2024.
“They have scraped through the most difficult period when the Malawi economy experienced sustained volatilities and shocks. With some economic fundamentals such as the exchange rate, inflation and energy supplies now stabilising, TNM has the potential to return to total profitability by the end of the year,” he said.
Jackson, who is an independent business management analyst, said TNM’s potential to swing back to total profit lies in an expected surge in demand for mobile internet and digital financial services.
He added that with the 2025 electioneering season around the corner, demand for mobile internet services and increased spending for communication could boost TNM’s Mpamba business.
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