TINASHE MAKICHI
Econet Wireless Zimbabwe (EWZ) breached the half a billion revenue mark during the half year ended August 31, recording a 70 percent increase to $600 million, underpinned by successful execution of the group’s regionalisation strategy.
In the same period last year, revenue was $352 million
The group’s Telecommunications, Media and Technology strategy accounted for the solid revenue performance in data and financial mobile money segments.
EWZ’s earnings before interest, tax, depreciation and amortisation firmed to close the period at 42 percent against 39 percent in the prior period anchored by cost efficiencies and agile operating structures. Profit after tax for the group was up 153 percent at $123 million from $48,8 million.
Capital expenditure for the group was down three percent at $19,4 million due the challenges currently obtaining in the economy.
“The business benefited from improved margins due to the reduction of interest payments, following the successful rights offer concluded by the company. As a company we have also managed to pay back all the funds from our shareholders in a space of one and half years,” EWZ finance director Roy Chimanikire told an analysts briefing on Thursday.
“These impressive set of results no doubt shows that Econet is now up there continental giants like Safaricom in Kenya. What makes us unique in this Zimbabwean market is the infrastructure that we have created. We sit at the heart of what everybody does in terms of data in the country.”
The telecommunications segment remained the anchor of the group’s performance contributing over 59 percent of total revenue. Traditional revenue streams of voice and SMS continued to grow as demand for these services remains buoyant, largely driven by the group’s proactive strategies designed to stimulate sustained demand.
This segment posted revenue increase of $352,5 million for the period from $252 million. The MNO contribution to total revenue was 59 percent.
On media, operating under Kwese brand, the group said media services continued to grow. Kwese iFlix which allows customers to view content on their mobile phone and Kwese play were launched on July 30, 2018 due to significant customer demand.
The digital transformation through B2B strategy saw the group deploy solutions in various sectors spanning manufacturing, mining, automobile, medical, public safety, transport and utilities, Econet said.
Chimanikire said EcoCash remained the most preferred payment method in Zimbabwe complementing government’s call for use of electronic channels as a means of settlement.
Cassava revenue for the period increased to $235 million from $93,3 million, which is an increase of 152 percent.
