Telekom Networks Malawi (TNM), the country’s second largest mobile operator by subscribers, has reported net profit after tax of MWK2.598 billion (USD6.2 million) for the twelve months ended 31 December 2013, an increase of 275% from MWK692 million the previous year, recovering to the levels experienced before the devaluation of the Malawi kwacha in 2012. The increase was driven by a 12% rise in subscribers and the liberalisation of the kwacha foreign exchange rate policy, which improved the availability of foreign currency in the market and enabled TNM to reduce its exposure to foreign exchange accounting losses. ‘The impact of the exchange rate, however, resulted in significant increases in most of the operating expenditure areas and the cost of new infrastructure investment, which are mainly denominated in foreign currencies,’ the company said in a statement. Service revenue grew 62% from MWK17.445 billion in 2012 to MWK28.257 billion the following year and EBITDA rose 87% year-on-year to MWK10.095 billion in 2013, while capital investment reached MK3.085 billion and was mainly focused on network upgrades to ensure a high service quality. ‘The profitability of the business has recovered to acceptable levels and is expected to continue improving in 2014. The company has initiated various business strategies supported by significant investment in the data network, network modernisation and expansion projects,’ the operator said. TNM exceeded the two million mobile subscriber mark in July 2013.
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