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Wednesday, 8th April 2020
12:27:34pm

Zim's Econet posts $166 million profit

Econet Wireless Zimbabwe (Econet) — Zimbabwe’s largest mobile operator — reported a $165,7 million profit after tax in the year ended February 2012, up 18 percent from $141 million last year.
The group’s revenue went up by 24 percent to $611 million during the period under review.
Earnings before interest, depreciation, taxes and amortisation increased by 20 percent to $290,8 million while total assets went up 27,4 percent to $812,4 million.
Debt to equity ratio stood at 65 percent, recovering from 86 percent in the previous comparable period.
Basic earnings per share were $1 from 83 cents.
Total liabilities closed the period under review at $429,6 million from $347 million as at February 28, 2011.
The cellular network company — with over 5,5 million subscribers out of Zimbabwe’s approximately 12 million population — said the its new products where experiencing exponential growth.
Econet recently launched a mobile money transfer facility, EcoCash, and mobile internet.
“Over one million subscribers were registered in less than six months since the launch of the product,” the group’s chairman Tawanda Nyambirai said, adding that its network expansion had significantly increased its competitive gap.
Nyambirai said in the past three financial years, the group had invested $614 million into the network.
He said the move had increased Econet’s market share to over 70 percent in just fewer than four years.
In January this year, Econet announced plans to launch voice over internet protocol (VoIP) George Barbaressos, Econet’s commercial director, said VoIP was one of the products that had been made possible under its broadband services.
VoIP allows users to make phone calls over the Internet, instead of the regular fixed telephone line, and is an increasingly popular service, especially for corporates.
“You are aware that Econet has been investing quite significantly in building an extensive fibre network. That puts us in a good space, as we can deploy more services that add value for our customers, and VoIP is just one of them,” he said.
Barbaressos said many businesses and households were migrating to VoIP and other new means of communication offered by telecoms companies due to the evolution of communication — from old methods such as drumming to the new age modes via social media.
The new trend in telecoms, he said, was the offering of converged solutions to the market.
In its interim results to August 2011, Econet reported attributable earnings of $74,3 million, up 15 percent year on year attributed to a 25 percent year on year growth in subscriber to $5,6 million.
Voice contributed 75,9 percent to total revenue, up from 62,9 percent the prior period while data and SMS contributed 13 percent.
-Daily News

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