* Profit after tax for the half year ended June 30, 2024 to be between MK2.192 billion and MK2.35 billion, representing an increase of between 181% to 201%
* The latest performance reflects a return to solid profitability for the telco as it recovers from cycles of distressed profit trajectory
By Duncan Mlanjira
Malawian-owned telco, Telekom Networks Malawi (TNM) Plc, listed on the Malawi Stock Exchange (MSE), says it expects its net profit for the first half of 2024 to increase by 201% to MK2.35 billion.
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TNM said in an updated trading statement published Wednesday that profit after tax for the half year ended June 30, 2024 to be between MK2.192 billion and MK2.35 billion, representing an increase of between 181% to 201%.
“After further reviews, profit after tax for the half-year ending June 30, 2024 is expected to be between MK2.192 billion and MK2.350 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 macro-economic conditions characterised by devaluations, high interest rates and inflation of over 30%.
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A market analyst, Dr Saidi Jackson described 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 scrapped through the most difficult period when the Malawi economy experienced sustained volatilities and shocks,” he observed. “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 end of the year.”
Jackson, who is an independent business management analyst and a former senior lecturer at UNICAF University Malawi, said TNM’s potential to wing back to total profit lies in an expected surge in demand for mobile internet and digital financial services.
“TNM has a more resilient and stable mobile Internet service, according to surveys by MACRA. If they can stay the course with their innovations such as 5G and fintech solutions such as Mpamba, TNM will be able to narrate a more positive profit story by end of year,” he said.
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.
Just this month, TNM has launched a range of FINTECH innovations aimed to increase access to cash flow for customers and the new offerings include e-SIM technology, a Micro Merchants Wallet, Mpamba Quick Pay and Mpamba Salary Overdraft — all set to enhance convenience, accessibility, productivity, and efficiency for users.
In a statement, TNM said the new range of products will go a long way to deepen digital financial inclusion as well as put Malawi on the highway to environmentally-friendly consumption of telecom services and products.
In addition, the innovations are designed to address real needs and deliver a supreme experience to Malawians, as said by Michel Hebert, TNM’s Chief Executive Officer, who emphasised that the innovations aim at aligning Malawians with the global telecommunications and FINTECH trends.
“At TNM, our mission is to build world-class digital solutions to empower every Malawian and connect Malawi to the world,” he is quoted as saying in the statement.
“Therefore, unveiling these innovations attests to our commitment towards revolutionizing Malawi’s digital landscape,” said Michel.
Through these innovations, TNM envisions the creation of digitally enhanced societies that benefit more from the services offered and Herbet said: “We are thrilled to introduce these innovations that reflect our commitment to enhancing the digital experience for our customers.
“By leveraging cutting-edge technology and addressing real-world needs, we aim to provide solutions that offer greater convenience, empowerment, and financial well-being.”
Hebert added that the introduction of these innovations marks a significant advancement in mobile connectivity and mobile money: “The embedded SIM (eSIM) innovation simplifies the user experience and offers greater flexibility and enhanced security.
“This gives unparalleled customer experience and convenience on our best 4G and only 5G network in Malawi. On the other hand, Micro Merchant Wallet aims to empower small business owners and entrepreneurs by providing them with affordable and user-friendly mobile payment solutions.
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“To the customers of small businesses, this offers the convenience of making payments without the risks of carrying cash around. This makes both the merchant and the customer experience a secure transaction environment.”
On the new Mpamba Quick Pay feature, Herbet said it is designed “to streamline payment processes, making transactions faster and more convenient”.
“With the use of a smart phone, the customer just scans a QR code at the checkout counter and payment will be done. The revolutionary Mpamba Salary Overdraft will provide salaried employees with quick access to salary advances directly through their Mpamba wallets.
“By offering salary advances directly through the Mpamba wallet, TNM Mpamba is addressing an essential need for financial flexibility,” Hebert said.
In receiving the good news, customer, Lucius Tito, who regularly uses TNM’s Mpamba Ndikankhe — the company’s mobile money loan through Mpamba — said he looked forward to interacting with TNM’s new products.
“I use TNM Mpamba Ndikankhe and Pasavute every day and these services have proved life-saving,” Tito said. “It’s great to see that TNM continues to pay attention to local insights to drive product innovation.”
TNM has assured Malawians of continued innovations in the industry as it cements its position as a pioneer telecommunications service provider in the country.
It is the only 5G network provider in Malawi and a leader in innovative digital solutions for both individuals and businesses.
TNM Mpamba is a FINTECH solutions provider that has served the Malawian society with the convenient and trusted services for more than 10 years.
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