04 November 2022
Airtel will continue to invest in its mobile phone unit in Malawi despite currency weakness in the country.
In the first half of 2022, Airtel Malawi’s costs increased by 199% as a result of 25% devaluation in the Malawian Kwacha. After-tax profits fell by 21.5%, attributed to a worsening foreign exchange position as a direct result of devaluation.
“The economy and company are exposed to continued impact of Kwacha depreciation and scarcity of foreign currency. Despite this we continue to focus on investing more, growing more customers and revenue, containing cost and diversifying currency sourcing to mitigate the exposures,” read a statement released by Airtel Malawi.
Despite these challenges, Airtel Malawi has grown its customer base by 11.1% to 6.4 million subscribers. In local currency terms, revenue grew by 14.3%, boosted by a 20% firming in voice revenue and a further 5% uptick in data revenue. During the period, Airtel Malawi repaid a principal debt amount of US$7 million out of its US$40 million loan, which means it has a total principal amount outstanding of US$33 million as at the end of the period.