By Jones Gadama
In a significant development, Telekom Networks Malawi (TNM) shareholders have welcomed a new strategic plan aimed at improving the company’s financial performance and boosting profitability.
The plan, which focuses on debt reduction and increasing revenue, has already shown promising results, with TNM reportedly making a profit of K10 billion in 2024 after posting losses in 2023.
According to TNM Board Chairperson Ted Sauti Phiri, the strategic plan is designed to benefit all shareholders, with the company’s leadership focused on driving growth and profitability.
Phiri emphasized that the plan’s success will be measured by its ability to deliver value to shareholders.
Shareholders, including Frank Harawa, have expressed gratitude to the company’s leadership for implementing effective measures to restore profitability.
Harawa’s sentiments reflect the optimism among shareholders that the new strategic plan will yield positive results.
TNM aims to retire its existing debt obligations, with plans to raise K30 billion through the issuance of new shares.
This move is expected to significantly improve the company’s financial health and reduce its debt burden. The company is working to boost revenue through improved operational efficiency and strategic investments.
This includes enhancing its telecommunications and mobile money services to better serve its customers.
TNM’s leadership is committed to delivering value to its shareholders, with a focus on long-term growth and profitability.
While some stakeholders have welcomed the strategic plan, others have raised concerns about potential dilution of minority shareholders’ interests.
The Minority Shareholders Association of Listed Companies (Misalico) has expressed worries that the issuance of new shares could dilute the current share price, benefiting majority shareholders more than minority ones.
In response, TNM’s Chief Executive Officer, Michel Hebert, has defended the approach, stating that the shares are being offered at a 7% discount, within the 10% limit allowed by the Malawi Stock Exchange (MSE) listing requirements.
Hebert emphasized that the funds raised will be used to restructure the company’s balance sheet and pay down expensive debt, unlocking value for all shareholders.
As TNM implements its strategic plan, shareholders and stakeholders will be closely monitoring the company’s progress.
With a focus on debt reduction, increased revenue, and shareholder value, TNM is poised to improve its financial performance and drive growth.
The success of this plan will depend on effective execution and the company’s ability to adapt to changing market conditions.
In related news, TNM has been actively working to enhance its customer experience, including introducing new features to curb mobile money fraud.
The company’s commitment to innovation and customer satisfaction will be crucial in driving its growth and profitability.
