Evaluation of the Business and Financial Performance of Tnm Limited for the Years 1 January 2008 to 31 December 2010
EVALUATION OF THE BUSINESS AND FINANCIAL PERFORMANCE OF TNM LIMITED FOR THE YEARS 1 JANUARY 2008 TO 31 DECEMBER 2010
Contents
INTRODUCTION 3
TNM MALAWI LIMITED 3
History and reforms in Malawi telecommunication sector 3
Company profile 4
Mission Statement 6
TNM’s Business operations and markets 6
Competition in telecommunication industry 6
TNM’s strategy for growth 7
OBJECTIVES 7
OVERALL RESEARCH APPROACH 8
CHARTS
Chart 1: Shareholding ratio of TNM Limited 5
TABLES
Table 1: subscriber and market share (source: TNM 2010 Annual Report) 7
INTRODUCTION
The research title is “an evaluation of the business and financial performance of TNM Limited for the years 1 January 2008 to 31 December 2010”. The research was conducted to feedback to the Government of Malawi on the outcome of a privatised market and also to provide results to prospective investors that can assist them to make an informed decision as to whether this new industry can provide them high and stable returns to their investment.
TNM Limited (TNM) was selected as choice of company as it is the first company to be incorporated after the regularisation of the telecommunication industry. The comparative company, Airtel is a private company, a subsidiary company of Bharti Airtel, India. TNM financial statements are presented in Malawi Kwacha, which is the company's functional currency and the official currency of the Republic of Malawi. All numbers in the tables of this research paper are listed in billions.
The Malawi Kwacha exchange rate to the United States Dollars is MK151.63/US$1.00. (Malawi Economic Review, 2010, 4th Qtre)
TNM MALAWI LIMITED
History and reforms in Malawi telecommunication sector
The telecommunications and postal services within Malawi were operated by the Government through a state-owned corporation, Malawi Posts and Telecommunications Corporation.
However, in 1994, the Government embarked on a radical economic reform and adopted
Contents
INTRODUCTION 3
TNM MALAWI LIMITED 3
History and reforms in Malawi telecommunication sector 3
Company profile 4
Mission Statement 6
TNM’s Business operations and markets 6
Competition in telecommunication industry 6
TNM’s strategy for growth 7
OBJECTIVES 7
OVERALL RESEARCH APPROACH 8
CHARTS
Chart 1: Shareholding ratio of TNM Limited 5
TABLES
Table 1: subscriber and market share (source: TNM 2010 Annual Report) 7
INTRODUCTION
The research title is “an evaluation of the business and financial performance of TNM Limited for the years 1 January 2008 to 31 December 2010”. The research was conducted to feedback to the Government of Malawi on the outcome of a privatised market and also to provide results to prospective investors that can assist them to make an informed decision as to whether this new industry can provide them high and stable returns to their investment.
TNM Limited (TNM) was selected as choice of company as it is the first company to be incorporated after the regularisation of the telecommunication industry. The comparative company, Airtel is a private company, a subsidiary company of Bharti Airtel, India. TNM financial statements are presented in Malawi Kwacha, which is the company's functional currency and the official currency of the Republic of Malawi. All numbers in the tables of this research paper are listed in billions.
The Malawi Kwacha exchange rate to the United States Dollars is MK151.63/US$1.00. (Malawi Economic Review, 2010, 4th Qtre)
TNM MALAWI LIMITED
History and reforms in Malawi telecommunication sector
The telecommunications and postal services within Malawi were operated by the Government through a state-owned corporation, Malawi Posts and Telecommunications Corporation.
However, in 1994, the Government embarked on a radical economic reform and adopted