TNM is a licensed mobile telecommunications operator in Malawi enjoying 62% and 33% market share in post-paid and pre-paid sect
TNM’s growth strategy > Constantly improve and expand infrastructure and capacity; > Grow the depth and availability of telecom
Financial highlights 88% growth in subscribers to 627,000 16% growth in revenues 5% growth in profit after tax 9% decline in EB
Subsciber growth 700 000 650 000 600 000 550 000 3000 000 3500 000 Capital investment 700 000 600 000 500 000 400 000 3 000 2 0
Financial highlights Our statement of vision Vision � Mission Always with you Our mission is to be "Malawi’s premier mobile com
Historical highlights Our journey thus far:- 2008 In November 2008 TNM successfully raised over MK2.58bn in new capital and lis
Stakeholder communications TNM has identified mechanisms and processes that promote enhanced levels of constructive stakeholder
Contents Chairman’s statement��� Your directors��� Management discussion and analysis� Executive management�� Corporate governa
Chairman’s statement Dear shareholders and partners, It gives me great pleasure to report on your company in its inaugural annu
Your directors TNM has a Board comprising of six directors, all of whom are non-executive.The Chief Executive Officer of the Co
Management discussion and analysis The expansion of our core network, coverage roll-out and improvement of new products and ser
We implemented a wide range of initiatives in 2008 to stimulate subscriber growth and improve mobile phone penetration. Key in
TNM revenue increased by 16% from MK5.8bn in 2007 to MK6.7bn in 2008 77.0% Prepaid 11.9% Postpaid 9.5% Interconnect revenue 1.6
Our people > Staff complement grew by 35% from 260 in 2007 to 350 in 2008 > Staff development and training initiatives continue
A total of 105 new base stations were constructed during 2008, the majority (67) of which covered areas in which TNM services w
At the end of the year our coverage of Malawi was as follows:- Chitipa Karonga Lake Malawi Rumphi Bolero Northern Ekwendeni Mzu
Promotions & marketing > Exciting promotions launched & well supported > Call-for-free, Zeni Zeni, Shop-A-Dream > SMS Bonus pro
From 2005 we have been the proud sponsor of the biggest football league in Malawi amounting to MK50 million annually.This was b
Prospects & revised forecast for 2009 > Subscribers planned to double > Revenue base expansion from new subscribers is a key ob
Executive management Our management team implements the long term strategy and vision of the company to generate relations with
Corporate governance > “TNM’s Board of Directors is responsible to shareholders for creating and delivering sustainable shareho
Committees The Board is authorised to form committees to assist in the execution of its duties, powers and authorities.The Boar
Directors interests As provided by the Companies Act 1984 and the Company’s Articles of Association, the Directors are bound to
Director’s annual report The Directors have pleasure in submitting their report together with the audited financial statements
Controlling shareholder By virtue of its shareholding and a mutual voting agreement with other non-public shareholders Press Co
Distributions to shareholders Prior to the intended declaration of a final dividend of 2t per share at the AGM total dividends
> Maintenance of proper accounting records; > Selection of suitable accounting policies and applying them consistently; > Makin
Independant Auditors Report 27
Balance sheet as at 31 December 2008 In thousands of Malawi Kwacha Assets Property, plant & equipment Intangible assets Total n
Income Statement for the year ended 31 December 2008 In thousands of Malawi Kwacha Revenue Direct operational costs Gross profi
Cash flows statement for the year ended 31 December 2008 In thousands of Malawi Kwacha Cash flows from operating activities Cas
Notes to the financial statements 1. Reporting entity Telekom Networks Malawi(TNM) is a company domiciled in Malawi and incorpo
3.1Foreign currency Transactions in foreign currencies are converted to Malawi Kwacha at the foreign exchange rate ruling at th
(vii) Capital work in progress Capital work in progress is an integral part of property, plant and equipment and measured at co
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior pe
(i) Restructuring A provision for restructuring is recognized when the company has approved a detailed and formal restructuring
(iii) Deferred income Deferred income consists of the value of unused airtime on prepaid service recharge vouchers sold to cust
3.17 Leased assets - Lessee Rentals payable under operating leases are charged to income statement on a straightline basis over
4.Critical accounting estimate and judgements 4.1 A number of the company’s accounting policies and disclosures require the det
The company’s risk management policies are established to identify and analyse the risks faced by the company, to set appropria
Currency risk The company transacts the majority of its sales, non-capital expenditure purchases and borrowings in its function
7. Revenue Revenue is derived from the following revenue streams:In thousands of Malawi Kwacha 2008 796,609 5,157,251 109,068 6
10. Selling and administrative expenses In thousands of Malawi Kwacha Audit fees Directors’ fees and expenses Depreciation and
13. Earnings per share The calculation of basic earnings per share at 31 December 2008 was based on the profit attributable to
14. Property, plant and equipment In thousands of Malawi Kwacha Land & buildings Cost At 1 January 2007 Additions Transfers Dis
15. Intangible assets In thousands of Malawi Kwacha Cost At 1 January Additions during the year Balance at 31 December Amortisa
The ageing of trade receivables at the reporting date was: In thousands of Malawi Kwacha Not past due Past due 0-30 days Past d
In addition, related parties, including shareholders, Directors and parties related thereto are subscribers to the company’s ph
Share premium continued In thousands of Malawi Kwacha 2008 2,529,282 (182,361) 2,346,921 2007 - Share issue premium proceeds du
22. Employee benefit liabilities In thousands of Malawi Kwacha 2008 40,903 29,215 70,118 2007 40,903 40,903 Severance pay provi
26. Sensitivity analysis Transaction losses arising on a 10 percent strengthening of the United States Dollar and Euro against
28. Financial instruments-exposure to liquidity risk The following are the contractual obligations due within 1 year which may
31. Exchange rates and inflation The average of the buying and selling exchange rates at year end of major foreign currencies a
8. Historical operating & financial summaries The following historical financial performances figures (available on our investo
Abridged income statement Year ended MK'000 Revenue Direct operational costs Gross Profit Other income Administration expenses
Abridged cash flow statements MK'000 Operating Activities Cash reciepts from customer Cash paid to suppliers and employees Cash
By investor category Industry codes Local companies Pension funds Citizen resident individuals Employees Insurance companies Fo
By size of shareholding Shareholding 1-5,000 5,001-10,000 10,001-25,000 25,001-50,000 50,001-100,000 100,001-200,000 200,001-50
Share trading statistics from 3 November 2008 to 31 December 2008:- 58
Shares traded as a % of total shares in issue Shares traded as a % of Free Float From date of listing: 3 November 2008 to 31 De
Notice of Annual General Meeting th Notice is hereby given that the 14 Annual General Meeting of the th shareholders of Telekom
Number of votes [1 Share = 1 Vote] 61
Signed at ……………………………………… on this …….……………. day of .………… 2009 Signature …………………………………………………………………………………………… Assisted by me [whe
Always with you Designed, Produced & Printed by Notion Communication ltd Malawi. Tel : +265 (0) 1914 664 Telekom Networks Malaw
Page 1:
Annual Report for the year ended
Page 2:
TNM is a licensed mobile telecommunications operator in Malawi
Page 3:
TNM’s growth strategy > Constantly improve and expand infrastru
Page 4:
Financial highlights 88% growth in subscribers to 627,000 16% g
Page 5:
Subsciber growth 700 000 650 000 600 000 550 000 3000 000 3500
Page 6:
Financial highlights Our statement of vision Vision � Mission A
Page 7:
Historical highlights Our journey thus far:- 2008 In November 2
Page 8:
Stakeholder communications TNM has identified mechanisms and pr
Page 9:
Contents Chairman’s statement��� Your directors��� Management d
Page 10:
Chairman’s statement Dear shareholders and partners, It gives m
Page 11:
Your directors TNM has a Board comprising of six directors, all
Page 12:
Management discussion and analysis The expansion of our core ne
Page 13:
We implemented a wide range of initiatives in 2008 to stimulate
Page 14:
TNM revenue increased by 16% from MK5.8bn in 2007 to MK6.7bn in
Page 15:
Our people > Staff complement grew by 35% from 260 in 2007 to 3
Page 16:
A total of 105 new base stations were constructed during 2008,
Page 17:
At the end of the year our coverage of Malawi was as follows:-
Page 18:
Promotions & marketing > Exciting promotions launched & well su
Page 19:
From 2005 we have been the proud sponsor of the biggest footbal
Page 20:
Prospects & revised forecast for 2009 > Subscribers planned to
Page 21:
Executive management Our management team implements the long te
Page 22:
Corporate governance > “TNM’s Board of Directors is responsible
Page 23:
Committees The Board is authorised to form committees to assist
Page 24:
Directors interests As provided by the Companies Act 1984 and t
Page 25:
Director’s annual report The Directors have pleasure in submitt
Page 26:
Controlling shareholder By virtue of its shareholding and a mut
Page 27:
Distributions to shareholders Prior to the intended declaration
Page 28:
> Maintenance of proper accounting records; > Selection of suit
Page 29:
Independant Aud
Page 30:
Balance sheet as at 31 December 2008 In thousands of Malawi Kwa
Page 31:
Income Statement for the year ended 31 December 2008 In thousan
Page 32:
Cash flows statement for the year ended 31 December 2008 In tho
Page 33:
Notes to the financial statements 1. Reporting entity Telekom N
Page 34:
3.1Foreign currency Transactions in foreign currencies are conv
Page 35:
(vii) Capital work in progress Capital work in progress is an i
Page 36:
An impairment loss in respect of goodwill is not reversed. In r
Page 37:
(i) Restructuring A provision for restructuring is recognized w
Page 38:
(iii) Deferred income Deferred income consists of the value of
Page 39:
3.17 Leased assets - Lessee Rentals payable under operating lea
Page 40:
4.Critical accounting estimate and judgements 4.1 A number of t
Page 41:
The company’s risk management policies are established to ident
Page 42:
Currency risk The company transacts the majority of its sales,
Page 43:
7. Revenue Revenue is derived from the following revenue stream
Page 44:
10. Selling and administrative expenses In thousands of Malawi
Page 45:
13. Earnings per share The calculation of basic earnings per sh
Page 46:
14. Property, plant and equipment In thousands of Malawi Kwacha
Page 47:
15. Intangible assets In thousands of Malawi Kwacha Cost At 1 J
Page 48:
The ageing of trade receivables at the reporting date was: In t
Page 49:
In addition, related parties, including shareholders, Directors
Page 50:
Share premium continued In thousands of Malawi Kwacha 2008 2,52
Page 51:
22. Employee benefit liabilities In thousands of Malawi Kwacha
Page 52:
26. Sensitivity analysis Transaction losses arising on a 10 per
Page 53:
28. Financial instruments-exposure to liquidity risk The follow
Page 54:
31. Exchange rates and inflation The average of the buying and
Page 55:
8. Historical operating & financial summaries The following his
Page 56:
Abridged income statement Year ended MK'000 Revenue Direct oper
Page 57:
Abridged cash flow statements MK'000 Operating Activities Cash
Page 58:
By investor category Industry codes Local companies Pension fun
Page 59:
By size of shareholding Shareholding 1-5,000 5,001-10,000 10,00
Page 60:
Share trading statistics from 3 Nov
Page 61:
Shares traded as a % of total shares in issue Shares traded as
Page 62:
Notice of Annual General Meeting th Notice is hereby given that
Page 63:
Number of votes [1
Page 64:
Signed at ……………………………………… on this …….……………. day of .………… 2009 S
Page 65:
Always with you Designed, Produced & Printed by Notion Communic
African Annual Reports
Click here to download the catalog as a PDF file.
To view this site you need Adobe Flash Player and your browser must allow javaScripts.
Go here to get the latest Flash Player.