TNM is a licensed mobile telecommunications operator in Malawi enjoying 62% and 33% market share in post-paid and pre-paid secto
TNM’s growth strategy > Constantly improve and expand infrastructure and capacity; > Grow the depth and availability of telecomm
Financial highlights 88% growth in subscribers to 627,000 16% growth in revenues 5% growth in profit after tax 9% decline in EBI
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 00
Financial highlights Our statement of vision Vision � Mission Always with you Our mission is to be "Malawi’s premier mobile comp
Historical highlights Our journey thus far:- 2008 In November 2008 TNM successfully raised over MK2.58bn in new capital and list
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 governan
Chairman’s statement Dear shareholders and partners, It gives me great pleasure to report on your company in its inaugural annua
Your directors TNM has a Board comprising of six directors, all of whom are non-executive.The Chief Executive Officer of the Com
Management discussion and analysis The expansion of our core network, coverage roll-out and improvement of new products and serv
We implemented a wide range of initiatives in 2008 to stimulate subscriber growth and improve mobile phone penetration. Key in t
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 we
At the end of the year our coverage of Malawi was as follows:- Chitipa Karonga Lake Malawi Rumphi Bolero Northern Ekwendeni Mzuz
Promotions & marketing > Exciting promotions launched & well supported > Call-for-free, Zeni Zeni, Shop-A-Dream > SMS Bonus prom
From 2005 we have been the proud sponsor of the biggest football league in Malawi amounting to MK50 million annually.This was by
Prospects & revised forecast for 2009 > Subscribers planned to double > Revenue base expansion from new subscribers is a key obj
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 sharehol
Committees The Board is authorised to form committees to assist in the execution of its duties, powers and authorities.The Board
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 f
Controlling shareholder By virtue of its shareholding and a mutual voting agreement with other non-public shareholders Press Cor
Distributions to shareholders Prior to the intended declaration of a final dividend of 2t per share at the AGM total dividends o
> Maintenance of proper accounting records; > Selection of suitable accounting policies and applying them consistently; > Making
Independant Auditors Report 27
Balance sheet as at 31 December 2008 In thousands of Malawi Kwacha Assets Property, plant & equipment Intangible assets Total no
Income Statement for the year ended 31 December 2008 In thousands of Malawi Kwacha Revenue Direct operational costs Gross profit
Cash flows statement for the year ended 31 December 2008 In thousands of Malawi Kwacha Cash flows from operating activities Cash
Notes to the financial statements 1. Reporting entity Telekom Networks Malawi(TNM) is a company domiciled in Malawi and incorpor
3.1Foreign currency Transactions in foreign currencies are converted to Malawi Kwacha at the foreign exchange rate ruling at the
(vii) Capital work in progress Capital work in progress is an integral part of property, plant and equipment and measured at cos
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior per
(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 custo
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 dete
The company’s risk management policies are established to identify and analyse the risks faced by the company, to set appropriat
Currency risk The company transacts the majority of its sales, non-capital expenditure purchases and borrowings in its functiona
7. Revenue Revenue is derived from the following revenue streams:In thousands of Malawi Kwacha 2008 796,609 5,157,251 109,068 63
10. Selling and administrative expenses In thousands of Malawi Kwacha Audit fees Directors’ fees and expenses Depreciation and a
13. Earnings per share The calculation of basic earnings per share at 31 December 2008 was based on the profit attributable to o
14. Property, plant and equipment In thousands of Malawi Kwacha Land & buildings Cost At 1 January 2007 Additions Transfers Disp
15. Intangible assets In thousands of Malawi Kwacha Cost At 1 January Additions during the year Balance at 31 December Amortisat
The ageing of trade receivables at the reporting date was: In thousands of Malawi Kwacha Not past due Past due 0-30 days Past du
In addition, related parties, including shareholders, Directors and parties related thereto are subscribers to the company’s pho
Share premium continued In thousands of Malawi Kwacha 2008 2,529,282 (182,361) 2,346,921 2007 - Share issue premium proceeds dur
22. Employee benefit liabilities In thousands of Malawi Kwacha 2008 40,903 29,215 70,118 2007 40,903 40,903 Severance pay provis
26. Sensitivity analysis Transaction losses arising on a 10 percent strengthening of the United States Dollar and Euro against t
28. Financial instruments-exposure to liquidity risk The following are the contractual obligations due within 1 year which may a
31. Exchange rates and inflation The average of the buying and selling exchange rates at year end of major foreign currencies af
8. Historical operating & financial summaries The following historical financial performances figures (available on our investor
Abridged income statement Year ended MK'000 Revenue Direct operational costs Gross Profit Other income Administration expenses O
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 For
By size of shareholding Shareholding 1-5,000 5,001-10,000 10,001-25,000 25,001-50,000 50,001-100,000 100,001-200,000 200,001-500
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 Dec
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 [wher
Always with you Designed, Produced & Printed by Notion Communication ltd Malawi. Tel : +265 (0) 1914 664 Telekom Networks Malawi
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Annual Report for the year ended
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TNM is a licensed mobile telecommunications operator in Malawi e
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TNM’s growth strategy > Constantly improve and expand infrastruc
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Financial highlights 88% growth in subscribers to 627,000 16% gr
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Subsciber growth 700 000 650 000 600 000 550 000 3000 000 3500 0
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Financial highlights Our statement of vision Vision � Mission Al
Page 7:
Historical highlights Our journey thus far:- 2008 In November 20
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Stakeholder communications TNM has identified mechanisms and pro
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Contents Chairman’s statement��� Your directors��� Management di
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Chairman’s statement Dear shareholders and partners, It gives me
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Your directors TNM has a Board comprising of six directors, all
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Management discussion and analysis The expansion of our core net
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We implemented a wide range of initiatives in 2008 to stimulate
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TNM revenue increased by 16% from MK5.8bn in 2007 to MK6.7bn in
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Our people > Staff complement grew by 35% from 260 in 2007 to 35
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A total of 105 new base stations were constructed during 2008, t
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At the end of the year our coverage of Malawi was as follows:- C
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Promotions & marketing > Exciting promotions launched & well sup
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From 2005 we have been the proud sponsor of the biggest football
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Prospects & revised forecast for 2009 > Subscribers planned to d
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Executive management Our management team implements the long ter
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Corporate governance > “TNM’s Board of Directors is responsible
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Committees The Board is authorised to form committees to assist
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Directors interests As provided by the Companies Act 1984 and th
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Director’s annual report The Directors have pleasure in submitti
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Controlling shareholder By virtue of its shareholding and a mutu
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Distributions to shareholders Prior to the intended declaration
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> Maintenance of proper accounting records; > Selection of suita
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Independant Aud
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Balance sheet as at 31 December 2008 In thousands of Malawi Kwac
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Income Statement for the year ended 31 December 2008 In thousand
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Cash flows statement for the year ended 31 December 2008 In thou
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Notes to the financial statements 1. Reporting entity Telekom Ne
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3.1Foreign currency Transactions in foreign currencies are conve
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(vii) Capital work in progress Capital work in progress is an in
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An impairment loss in respect of goodwill is not reversed. In re
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(i) Restructuring A provision for restructuring is recognized wh
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(iii) Deferred income Deferred income consists of the value of u
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3.17 Leased assets - Lessee Rentals payable under operating leas
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4.Critical accounting estimate and judgements 4.1 A number of th
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The company’s risk management policies are established to identi
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Currency risk The company transacts the majority of its sales, n
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7. Revenue Revenue is derived from the following revenue streams
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10. Selling and administrative expenses In thousands of Malawi K
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13. Earnings per share The calculation of basic earnings per sha
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14. Property, plant and equipment In thousands of Malawi Kwacha
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15. Intangible assets In thousands of Malawi Kwacha Cost At 1 Ja
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The ageing of trade receivables at the reporting date was: In th
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In addition, related parties, including shareholders, Directors
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Share premium continued In thousands of Malawi Kwacha 2008 2,529
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22. Employee benefit liabilities In thousands of Malawi Kwacha 2
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26. Sensitivity analysis Transaction losses arising on a 10 perc
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28. Financial instruments-exposure to liquidity risk The followi
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31. Exchange rates and inflation The average of the buying and s
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8. Historical operating & financial summaries The following hist
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Abridged income statement Year ended MK'000 Revenue Direct opera
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Abridged cash flow statements MK'000 Operating Activities Cash r
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By investor category Industry codes Local companies Pension fund
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By size of shareholding Shareholding 1-5,000 5,001-10,000 10,001
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Share trading statistics from 3 Nov
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Shares traded as a % of total shares in issue Shares traded as a
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Notice of Annual General Meeting th Notice is hereby given that
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Number of votes [1
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Signed at ……………………………………… on this …….……………. day of .………… 2009 Si
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Always with you Designed, Produced & Printed by Notion Communica
African Annual Reports
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