Telekom Networks Malawi

Ticker code TNM Industry Communications Services 5th Floor, Livingstone Towers
Glyn Jones Road
P.O. Box 3039
Blantyre, Malawi
ISIN MW000A1C5MM7 Sector Services
Initial Listing 3 November 2008 Financial Year End 31 December
Website www.tnm.co.mw Results Released Half-yearly
2010 2011 2012 2013 2014
  MWK'000 MWK'000 MWK'000 MWK'000 MWK'000
Statement of comprehensive income
Revenue 10,872,628 12,813,513 18,041,169 28,874,360 40,517,010
Direct operational costs -4,509,739 -4,947,783 -8,739,336 -13,056,959 -17,659,353
Gross profit 6,362,889 7,865,730 9,301,833 15,817,401 22,857,657
Earnings before interest, tax, depreciation and amortization 3,646,861 4,698,346 5,407,434 10,095,211 14,567,771
Results from operating activities 2,035,123 2,528,760 3,211,243 7,003,243 10,522,409
Profit before income tax 1,611,282 1,859,870 1,185,823 3,875,304 7,635,769
Income tax expense -436,409 -501,380 -493,511 -1,276,823 -2,392,527
Profit for the year 1,174,873 1,358,490 692,312 2,598,481 5,243,242
EBITDA margin 34% 37% 30% 35% 36%
EBITDA per share (MK) 0.36 0.47 0.54 1.01 1.45
Dividend per share (MK) 0.06 0.06 0.07 0.09 0.19
Earnings per share
Basic earnings per share (MK) 0.12 0.14 0.07 0.26 0.52
Number of ordinary shares in issue 10,040,450 10,040,450 10,040,450 10,040,450 10,040,450
Statement of financial position 
Assets
Non-current assets 13,395,583 13,895,093 19,724,787 19,680,539 29,813,509
Current assets 2,269,178 3,077,009 3,701,649 4,952,754 9,793,016
Total assets 15,664,761 16,972,102 23,426,436 24,633,293 39,606,525
Capital and liabilities
Total equity 7,472,652 8,228,715 8,218,195 9,913,035 13,248,591
Non-current liabilities 906,121 2,933,063 3,211,446 1,791,637 2,717,304
Current liabilities 7,285,988 5,810,324 11,996,795 12,928,621 23,640,630
Total liabilities 8,192,109 8,743,387 15,208,241 14,720,258 26,357,934
Total equity and liabilities 15,664,761 16,972,102 23,426,436 24,633,293 39,606,525
Statement of cash flows
Net cash generated from operating activities 2,878,294 3,507,175 4,839,263 3,812,433 16,298,857
Net cash used in investing activities -2,428,510 -4,809,541 -7,974,513 -2,808,047 -14,097,366
Net cash from/used in financing activities -625,271 2,199,208 -93,379 -2,011,226 1,485,269
Net increase/decrease in cash and cash equivalents -175,487 896,842 -3,228,629 -1,006,840 3,686,760
Cash and cash equivalents at beginning of year -1,061,043 -1,236,530 -339,688 -3,568,317 -4,575,157
Cash and cash equivalents at end of year -1,236,530 -339,688 -3,568,317 -4,575,157 -888,397

Period ended: 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14
Unit: MWK'000 MWK'000 MWK'000 MWK'000 MWK'000
Statement type: Audited Audited Audited Audited Audited
View original statement: Download Download Download Download Download
Revenue 10,872,628 12,813,513 18,041,169 28,874,360 40,517,010
Direct operational costs -4,509,739 -4,947,783 -8,739,336 -13,056,959 -17,659,353
Gross profit 6,362,889 7,865,730 9,301,833 15,817,401 22,857,657
Other income 104,550 139,466 258,502 240,021 780,009
Selling and administrative expenses -2,820,578 -3,306,850 -4,152,901 -5,962,211 -9,069,895
Earnings before interest, tax, depreciation and amortization 3,646,861 4,698,346 5,407,434 10,095,211 14,567,771
Depreciation and amortization -1,611,738 -2,169,586 -2,196,191 -3,091,968 -4,045,362
Results from operating activities 2,035,123 2,528,760 3,211,243 7,003,243 10,522,409
Finance income 30,219 37,001 52,602 248,322 90,824
Finance expenses -454,060 -705,891 -2,078,022 -3,376,261 -2,977,464
Net finance expense -423,841 -668,890 -2,025,420 -3,127,939 -2,886,640
Profit before income tax 1,611,282 1,859,870 1,185,823 3,875,304 7,635,769
Income tax expense -436,409 -501,380 -493,511 -1,276,823 -2,392,527
Profit for the year 1,174,873 1,358,490 692,312 2,598,481 5,243,242
Other comprehensive income - - - - -
Total comprehensive income for the year 1,174,873 1,358,490 692,312 2,598,481 5,243,242
EBITDA margin 34% 37% 30% 35% 36%
EBITDA per share (MK) 0.36 0.47 0.54 1.01 1.45
Dividend per share (MK) 0.06 0.06 0.07 0.09 0.19
Earnings per share
Basic earnings per share (MK) 0.12 0.14 0.07 0.26 0.52
Number of ordinary shares in issue 10,040,450 10,040,450 10,040,450 10,040,450 10,040,450

Period ended: 30-Jun-13 31-Dec-13 30-Jun-14 31-Dec-14 30-Jun-15
Period length: 6 months 6 months 6 months 6 months 6 months
Unit: MWK Millions MWK Millions MWK Millions MWK Millions MWK Millions
Statement type: Unaudited Audited Unaudited Audited Unaudited
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Service revenue 11,643 16,614 17,285 22,732 21,484
Hardware and equipment revenue 294 323 237 263 305
Total revenue 11,937 16,937 17,522 22,995 21,789
Direct operational costs -5,709 -7348 -8,047 -9,612 -9,833
Gross profit 6,228 9,589 9,475 13,383 11,956
Other income 100 140 431 349 451
Selling and administrative expenses -2,625 -3,337 -3,874 -5,196 -5,182
Earnings before interest, tax, depreciation and amortization  3,703 6,392 6,032 8,536 7,225
Depreciation and amortization -1,421 -1,671 -1,957 -2,088 -2,596
Results from operating activities 2,282 4,721 4,075 6,448 4,629
Finance income 454 - 67 24 19
Finance expenses -1,894 -1,688 -1,368 -1,610 -772
Net finance expense -1,440 -1,688 -1,301 -1,586 -753
Profit before income tax 842 3,033 2,774 4,862 3,876
Taxation -284 -993 -934 -1,459 -1,237
Profit for the period 558 2,040 1,840 3,403 2,639
Other comprehensive income - - - - -
Total comprehensive income 558 2,040 1,840 3,403 2,639
           
Movement in retained earnings
Retained earnings brought forward 5,470 5,727 7,164 8,502 10,500
Profit for the period 558 2,040 1,840 3,403 2,639
Dividend declared -301 -603 -502 -1405 -1,004
Retained earnings carried forward 5,727 7,164 8,502 10,500 12,135
Basic earnings per share (MK) 0.06 0.20 0.18 0.34 0.26
Dividend per share 0.03 0.06 0.05 0.14 0.10
Number of ordinary shares in issue (millions) 10,040 10,040 10,040 10,040 10,040

Period ended: 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14
Unit: MWK'000 MWK'000 MWK'000 MWK'000 MWK'000
Statement type: Audited Audited Audited Audited Audited
View original statement: Download Download Download Download Download
Assets          
Non-current assets
Property, plant and equipment 13,207,818 13,347,485 18,783,149 17,948,581 23,926,698
Intangible assets 187,765 547,608 941,638 1,731,958 5,886,811
Total non-current assets 13,395,583 13,895,093 19,724,787 19,680,539 29,813,509
           
Current assets
Inventories 81,798 149,938 784,100 500,846 1,116,180
Trade and other receivables 1,245,800 1,653,204 1,546,630 3,278,193 4,962,235
Amount due from related companies 88,778 223,140 775,051 395,943 60,037
Income tax recoverable - - 80,709 - -
Bank and cash balances 852,802 1,050,727 515,159 777,772 3,654,564
Total current assets 2,269,178 3,077,009 3,701,649 4,952,754 9,793,016
Total assets 15,664,761 16,972,102 23,426,436 24,633,293 39,606,525
           
Capital and liabilities           
Equity
Share capital 401,618 401,618 401,618 401,618 401,618
Share premium 2,346,921 2,346,921 2,346,921 2,346,921 2,346,921
Retained earnigns 4,724,113 5,480,176 5,469,656 7,164,496 10,500,052
Total equity 7,472,652 8,228,715 8,218,195 9,913,035 13,248,591
           
Non-current liabilities
Deferred tax 421,636 418,118 418,035 174,054 31,595
Long-term portion of interest bearing loans 342,661 2,514,945 2,793,411 1,617,583 278,070
Long-term portion of deferred payment facility - - - - 2,407,639
Employee benefits liability 141,824 - - - -
Total non-current liabilities  906,121 2,933,063 3,211,446 1,791,637 2,717,304
           
Current liabilities 
Bank overdraft 2,089,332 1,390,415 4,083,476 5,352,929 4,542,961
Current portion of interest bearing loans 91,376 753,750 1,461,439 1,567,582 1,663,861
Current portion of deferred payment facility - - - - 2,228,601
Dividend payable 200,809 200,809 200,809 301,214 702,832
Deferred income 250,031 264,992 611,174 1,175,564 1,609,418
Trade and other payables 4,583,722 3,020,805 5,639,817 3,729,022 11,728,526
Amounts due to related parties - - - - 241,946
Income tax liabilities 70,718 179,553 - 802,310 922,485
Total current liabilities  7,285,988 5,810,324 11,996,795 12,928,621 23,640,630
Total liabilities  8,192,109 8,743,387 15,208,241 14,720,258 26,357,934
Total equity and liabilities  15,664,761 16,972,102 23,426,436 24,633,293 39,606,525

Period ended: 30-Jun-13 31-Dec-13 30-Jun-14 31-Dec-14 30-Jun-15
Unit: MWK Millions MWK Millions MWK Millions MWK Millions MWK Millions
Statement type: Unaudited Audited Unaudited Audited Unaudited
View original statement: Download Download Download Download Download
Assets          
Non-current assets
Property, plant and equipment 19,083 17,949 21,698 23,927 24,795
Intangible assets 846 1,732 1,742 5,887 5,943
Total non-current assets 19,929 19,681 23,440 29,814 30,738
           
Current assets
Inventories 516 500 391 1,116 1,184
Trade and other receivables 2,522 3,278 5,641 4,962 5,128
Amount due from related companies 793 396 40 60 67
Bank and cash balances 447 778 748 3,655 1,525
Total current assets 4,278 4,952 6,820 9,793 7,904
Total assets 24,207 24,633 30,260 39,607 38,642
           
Equity and liabilities          
Shareholders' equity
Share capital 401 402 402 402 402
Share premium 2,347 2,347 2,347 2,347 2,347
Retained earnings 5,727 7,164 8,502 10,500 12,135
Total equity 8,475 9,913 11,251 13,249 14,884
           
Non-current liabilities 
Deferred tax 405 174 59 32 165
Long-term portion of interest bearing loans 2,545 1,618 2,443 278 5,000
Long-term portion of deferred payment facility - - - 2,407 991
Total non-current liabilities  2,950 1,792 2,502 2,717 6,156
           
Current liabilities 
Trade and other payables 5,136 3,728 5,820 11,729 6,718
Current portion of interest bearing loans 1,345 1,568 2,114 1,664 1,060
Current portion of deferred payment facility - - - 2,229 3,336
Deferred income 715 1,176 1,385 1,609 1,905
Dividend payable 301 301 502 703 1,004
Income tax payable 169 802 573 922 822
Bank overdraft 5,116 5,353 6,113 4,543 2,525
Amounts due to related parties - - - 242 232
Total current liabilities  12,782 12,928 16,507 23,641 17,602
Total liabilities  15,732 14,720 19,009 26,358 23,758
Total equity and liabilities 24,207 24,633 30,260 39,607 38,642

Period ended: 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14
Unit: MWK'000 MWK'000 MWK'000 MWK'000 MWK'000
Statement type: Audited Audited Audited Audited Audited
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Cash flows from operating activities
Cash receipts from customers 10,157,555 12,850,582 17,685,727 27,761,926 39,048,720
Cash payments to suppliers and employees -6,495,006 -8,404,615 -11,077,063 -20,568,397 -17,778,394
Cash generated from operations 3,662,549 4,445,967 6,608,664 7,193,529 21,270,326
Interest paid -408,713 -542,709 -1,015,545 -2,743,312 -2,557,438
Income tax paid -375,542 -396,083 -753,856 -637,784 -2,414,031
Net cash generated from operating activities  2,878,294 3,507,175 4,839,263 3,812,433 16,298,857
           
Cash flows from investing activities
Interest received 30,219 37,001 52,602 248,322 90,824
Acquisition of property, plant and equipment -2,351,719 -4,433,176 -7,504,230 -2,006,045 -9,465,041
Purchase of intangible assets -123,005 -424,174 -534,158 -1,079,302 -4,739,299
Proceeds from sale of property, plant and equipments 15,995 10,808 11,273 28,978 16,150
Net cash used in investing activities -2,428,510 -4,809,541 -7,974,513 -2,808,047 -14,097,366
           
Cash flows from financing activities 
Dividend paid -602,427 -602,427 -702,832 -803,236 -1,506,068
Repayment of loans -22,844 -78,375 -1,535,363 -1,207,990 -1,438,976
Proceeds from loans - 2,880,010 2,144,816 - 180,000
Deferred payment facility - - - - 4,250,313
Net cash from/used in financing activities  -625,271 2,199,208 -93,379 -2,011,226 1,485,269
           
Net increase/decrease in cash and cash equivalents -175,487 896,842 -3,228,629 -1,006,840 3,686,760
Cash and cash equivalents at beginning of year -1,061,043 -1,236,530 -339,688 -3,568,317 -4,575,157
Cash and cash equivalents at end of year -1,236,530 -339,688 -3,568,317 -4,575,157 -888,397

Period ended: 30-Jun-13 31-Dec-13 30-Jun-14 31-Dec-14 30-Jun-15
Period length: 6 months 6 months 6 months 6 months 6 months
Unit: MWK Millions MWK Millions MWK Millions MWK Millions MWK Millions
Statement type: Unaudited Audited Unaudited Audited Unaudited
View original statement: Download Download Download Download Download
Operating activities
Cash receipts from customers 11,048 16,714 27,309 11,740 20,125
Cash paid to suppliers and employees -8,619 -11,950 -20,882 3,103 -17,371
Cash generated from operations 2,429 4,764 6,427 14,843 2,754
Interest paid -1,339 -1,404 -1,405 -1,152 -1,363
Income tax paid -46 -592 -1,279 -1,135 -1,202
Cash flows generated by operating activities 1,044 2,768 3,743 12,556 189
           
Investing activities
Interest received 118 130 68 23 19
Purchase of property, plant and equipment -1,703 -303 -5,438 -4,027 -2,943
Purchase of software - -1,079 -278 -4,461 -605
Proceeds from sale of property, plant and equipment 21 8 9 7 26
Net cash used in investing activities -1,564 -1,244 -5,639 -8,458 -3,503
           
Financing activities
Repayments of loans -379 -829 -733 -706 -862
Receipts of loans - - - 180 5,000
Deferred payment facility - - 2,140 2,110 -233
Payment of dividends -201 -602 -301 -1205 -703
Net cash generated from financing activities -580 -1,431 1,106 379 3,202
           
Net increase/decrease in cash and cash equivalents -1,100 93 -790 4,477 -112
Cash and cash equivalents at beginning of period -3,568 -4,668 -4,575 -5,365 -888
Cash and cash equivalents at end of period  -4,668 -4,575 -5,365 -888 -1,000