According to a report by AllAfrica.com, state-owned Telecomunicacoes de Mocambique (TDM) has generated profit after two successive years of losses. At a press conference in Maputo last week, the TDM board announced that the company made a profit of MZN763.5 million (USD25.8 million) during the twelve months to 31 December 2011, compared to a loss of MZN96.1 million in the year-earlier period. TDM chairman Teodato Hunguana, who previously held a string of senior positions within the government and judiciary, took on his new role around 18 months ago, and set about reorganising the telco’s business structure and management. Under Hunguana’s stewardship the board implemented a strict cost-cutting programme, including freezing the wages of senior staff. As well as seeing its bottom line boosted by its nationwide expansion, TDM says that it has also benefitted from fees paid by international fibre-optic cable operators whose infrastructure crosses Mozambican territory. CAPEX for 2011 was MZN1.28 billion, a four-fold increase on 2010’s investment of MZN294 million. CEO Zainadine Dalsuco commented: ‘There was no miracle for us to reach these results. The stability of the [local currency the] metical and the reduction in the number of breakdowns in the fibre-optic cable had an important impact on the accounts’. TDM’s investments are generally made in foreign currency, and the metical held reasonably steady against both the dollar and the euro in 2011.