Telekom Networks Malawi interim profit plunges 20%
Telekom Networks Malawi (TNM) anticipates a fall in after-tax profits for the half year period to the end of June 2020, as companies begin to count the cost of COVID-19.
According to the latest official health data, the pandemic has to date claimed six lives in the country, with 550 infections.
TNM has now advised of a 20% fall in its after-tax profitability for the 2020 half year period.
In a trading update released on the Malawi Stock Exchange last week, Company secretary Christina Mwansa said: “Telekom Networks Malawi accordingly advises that profit after tax for the half year ending June 2020 is expected to be at least 20% lower than the previous corresponding period.”
The company’s auditors are yet to review the financials for the period, but TNM is bound by listing laws to notify shareholders of any significant fall or increase in earnings prior to official publication of the information.
TNM confirmed it will l publish financials for the June 2020 half year period by the end of September.
Malawian telecom companies cut transaction fees for mobile money in April in a bid to ease the burden on financially pressurised subscribers.
This was after President Peter Mutharika directed that banks and mobile money companies lower fees for all electronic transactions to encourage use of such platforms instead of cash for payments.
There is also widespread concern that lower economic activity, as a result of COVID-19, impacted on average revenue per user income for telecom companies.
Malawians have taken to social media to complain about exorbitant data fees which they want lowered to promote internet connectivity across the country.