The company’s GDP contribution has shown an increase by 34%, up from K30 billion which was a total contribution for the 2015 financial year.
The contribution comprises taxes and fees to government and Malawi Communications Regulatory Authority (MACRA), dividends to shareholders, benefits and emoluments to employees, retained earnings for infrastructure investment, payments to distribution partners, and interest to lenders of capital.
During its 22nd Annual general meeting held at Mount Soche in Blantyre on 15th June 2017, it was discovered in the 2016 TNM Annual Report that investment in infrastructure accounted for the lion share of the wealth created, and included capital expenditure in launching a 4G/LTE network platform, the first mobile carrier of its kind in Malawi amounting to K11.8 billion.
Government received K7 billion in form of taxes fees and levies, employees received K8 billion in salaries and benefits, while K3.4 billion was for payment of interest. Shareholders received more than K3 billion in dividends.
“Our business model created wealth of more than K40 billion, 71% of which was shared back with the economy. TNM’s sustainable business is built on profits, good governance, and innovation,” said Chairman Matthews Chikaonda in the annual report.
Chief Executive Officer Douglas Stevenson said TNM’s overall revenues increased by 31% in 2016, which he attributed to growth in subscriber base, increases in prepaid airtime revenues and improvements as well as expansion in network.
“Good performance in prepaid airtime revenues, accounting for 54% of our revenues, which grew by 21% to MK34.9 billion, was recorded, as customers enjoyed a better-quality network and wider network availability. A marked increase in gross connections and general customer usage, especially in the Northern and Central regions, was recorded and complemented by improvements in distribution and customer services,” said Stevenson in the Annual Report.
The CEO said between 2015 and 2016, TNM invested a total of K21.2 billion to roll out the 4G/LTE network platform which enables TNM to be the first provider of the fastest internet and data service on the backbone of a mobile network. Other areas of investment using this capex included Lilongwe and Blantyre coverage expansion, improvements in fixed broadband and mobile broadband technology and various other upgrades.
He said during the financial year under review, TNM achieved the status of an integrated mobile network and ICT service provider capable of offering network convergence in terms of GSM, telephony, video and data communication services within a single network platform.
“Together, the TNM 4G LTE upgrade created a super-fast, easy to use, network for subscribers to enjoy media streaming, messaging services, downloads, and more. It’s from these capabilities, that TNM’s new product and service offerings were rolled out,” he said.
Stevenson said going forward, TNM is implementing a plan that guarantees universal access to data and broadband, and the use of appropriate end-user devices, including smart phones that provide optimal use and compatibility with growth in TNM’s mobile innovations.
“We will have the fastest Internet and data services and the most reliable uptime, along with the greatest accessibility. Finally, our customer service will be second to none. Much of what is required has been in progress over the past two to three years, but our 4G LTE network is a game changer,” he said.