Airtel Malawi Plc’s stock price has shown remarkable resilience on the bourse, following the reinstatement of its financial statements for the year ending December 31, 2023. The telecom giant, now valued at MWK 1.1 trillion, saw its share price climb to MWK100.0 from around MK44.1 in August 2024, reflecting renewed investor confidence despite a challenging financial year.
2023 Restated Financial Performance
In its restated financial statements, Airtel Malawi reported a loss of MWK 15.4 billion, a significant decline from the restated profit of MWK 31.4 billion in 2022. The loss was primarily driven by:
- Forex Losses: A massive foreign exchange loss of MWK 80.54 billion, following the 66.0% devaluation of the Malawi Kwacha in 2023.
- Rising Costs: Operating expenses increased by 37.4%, largely due to inflationary pressures, higher fuel prices, and increased network operation costs.
- Net Finance Costs: Skyrocketed by 288.0%, adding to the company’s financial burden.
2024 Half-Year Performance Boosts Confidence
Despite the losses in 2023, Airtel Malawi’s strong half-year performance in 2024 has restored investor sentiment.
- Revenue grew by 37.1% to MWK 117.86 billion, driven by robust demand for voice and data services.
- Profit After Tax increased by 16.7% to MWK 21.3 billion, signaling a return to profitability.
- Customer Base expanded to 7.6 million, a 12.3% growth, alongside higher data penetration.
- Capex increased by 178.1%, reflecting continued investment in network expansion and digital infrastructure.
Airtel Malawi’s stock, which opened the year at MWK60.0 and dipped to a year low of MWK44.0, has now rallied to MWK100.0, buoyed by the positive half-year results. Analysts cite improved operational performance and strategic investments as key factors driving the rebound.
