Mozambican state-owned TDM posts 9.1 ME profit; Mcel losses down to 16.9ME

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Mozambican state-owned TDM posts 9.1 ME profit; Mcel losses down to 16.9ME

2:23 CAT | 27 Sep 2018

Mcel Maputo offices. File photo: Notícias

Mozambique Telecommunications (TDM), the state-owned telecommunications company and sole land-line operator in the country, posted a profit of 9.1 million Euros in 2017, while Mcel, the state-owned mobile operator, reduced its losses to 11.5 million Euros.

Results from the 2017 fiscal year, reported on today by the newspaper Notícias, indicate that TDM’s revenues saw a leap from 2016 results, when the company posted a loss of 23 million Euros.

In 2017, the state land-line operator reported a positive operating result of 2.2 million Euros, a 898% increase on the 2016 figure.

In 2016, Mcel posted a negative operating result of 24.9 million Euros, but results at the mobile phone operator last year point to a positive variation of 53% between 2016 and 2017. The 2017 net result stands at a loss of 16.9 million Euros, equivalent to a 73% improvement.

Commenting on the results, Mohamed Jossub, the president of TDM/Mcel, said that the two companies must transform the difficulties they face into challenges in order to stay in business.

“These difficulties are challenges for both companies to reinvent themselves in order to ensure the continuity of their business in the telecommunications market in Mozambique,” Jossub said.

The two companies, he continued, should prioritise the implementation of structural projects critical for the development of their fixed-line and mobile networks.

The Mozambican government decided in 2017 to merge TDM and Mcel, leading the two companies to embark on a restructuring process which included the resizing of the workforce.

Source: Lusa