By Duncan Mlanjira
Airtel Malawi Plc has posted K15.908 billion as profit after tax as at December 31, 2019 which is up by K13.598 from the K2.310 billion it made the previous year.
According to the financial results prepared by chartered accountants Deloitte, on behalf of the Airtel Malawi Board, the profit after tax went up mainly due to increase in operating profit and that the previous year’s had one-off impact on reversal of unrealised exchange gain on unpaid liability of Malawi Towers Limited to Airtel Malawi Plc.
The company’s Board has since recommended a final dividend of K1.25 per ordinary share and will be paid after approval at the annual general meeting (AGM) in July 2020 at a date to be determined.
The financials further say a double digit customer base grew at 19.4% to 4 million and revenue on like-to-like basis but excluding mobile money, increased by 12.8% to K92.824 billion.
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Revenue growth recorded across all business segments, with voice revenue, went up by 3.1%, data by 42.1% and other revenue by 16%.
EBITDA went up 11.3% to K38.560 billion and EBITDA margin at 41.5% (on like-to-like basis excluding mobile money).
Free cash flow was K12.471 billion, compared with negative free cash flow in previous year while basic earnings per share (EPS) was K1.45.
The Airtel Malawi Plc financial statements for the year ended 31 December 2019 have been prepared without Airtel Money operational activities.
The previous year’s figures of 2018 consist of both telecommunication and mobile money services.
The financials say the ‘on like-to-like basis excluding mobile money’ comparison used in the commentary on financial results compares the 2019 performance to 2018 results, excluding the results of the mobile money operation in that year.
Airtel MD Charles Kamoto
“The company during the year sub divided the ordinary shares in the ratio of 1:11,000,” says the financials. “Earnings per share has been restated considering all the shares as at 31st December 2019 had been sub divided on 31st December 2018 for like to like comparison as a result 2018 has an EPS of K0.21 on like-to-like basis.”
According to the Board’s chairperson Alex Chitsime and Managing Director Charles Kamoto, the directors have prepared the summary financial statements in order to meet the listing requirements of the Malawi Stock Exchange.
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“The Directors have considered the listing requirements of the Malawi Stock Exchange and believe that the summary statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity are sufficient to meet the requirements of the users of the summary financial statements.”
On outlook, Airtel takes cognizance that the country’s business enters a period of increased volatility as a result of the impact of COVID-19 on the economy and customer demand, due to lower disposable income.
“Our focus remains to support the communities where we operate and keep our 4 million customers connected to the network.
“Our view on the medium-term opportunity for growth in Malawi has not changed as the telco sector will continue to benefit from population growth and need for increased connectivity.
“We expect to continue to execute our strategy focused on increasing mobile penetration in Malawi through investment in rural unserved markets as well as digitise the economy by increasing penetration of data usage.”
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In their opinion to Airtel shareholders, auditors say the summary financial statements, which comprise the summary statement of financial position as at 31 December 2019, the summary statement of comprehensive income, summary statement of changes in equity and summary statement of cash flows for the year then ended are derived from the audited financial statements of Airtel Malawi plc for the year ended 31 December 2019.
“In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the financial statements, and the basis described on the basis of preparation paragraph.”
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Airtel Malawi officially listed on Malawi Stock Exchange on February 24, 2020 and by close of business its shares had gone up by 44 percent from the K12.69 that was offered through the Initial Public Offer (IPO) to K17.99 per share.
After the official listing MD Kamoto applauded the new shareholders for taking the bold step to invest in the company and win customers for life through delivering an exceptional experience that is convenient, affordable and enables the lifestyle evolution.
He had also said the company has invested significantly in its network as all its sites are 100 percent 4G.