TNM LogoTelekom Networks Malawi (TNM), the country’s integrated mobile and internet operator, has reported an increase in net profit by 3% for 2015, the company said on Wednesday.

In published results, TNM, listed on the Malawi Stock Exchange (MSE) and whose main rival is the local unit of India’s Bharti Airtel, said net profit after taxation for FY 15 increased by 3% to MWK 5.4 billion from MWK5.2 billion in 2014.

TNM notes however that it experienced high finance costs due to volatile exchange rates on FCD expenditures, resulting in a foreign exchange rate loss of MWK1.49 billion.

The telco says net financing or borrowing cost increased to K4.4 billion from K2.8 billion in 2014, and the figure included an FX loss of K1.49 billion, up from K420 million the previous financial year.

“A high inflation environment, high interest rates, volatile exchange rates with considerable foreign currency expenditure continues to drive increased costs for the operation,” reads the report co-signed by new CEO Douglas Stevenson and Chairman Mathews Chikaonda.

Stevenson, an experienced telecoms executive joined TNM from Vodacom Africa.

In 2015, TNM completed an outright acquisition of Malawi’s leading internet service provider, Burco to become an integrated mobile and ICT company.

TNM says in the report accompanying the FY-15 statements that it needs to maintain profitability to sustain future investment in infrastructure expansion projects and technology upgrades.

It proposes to give shareholders of the company a total dividend of above K3 billion at the rate of 30 tambala per share, up from 19 tambala.

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