High data usage propels Econet
LIVINGSTONE MARUFU
Econet Wireless Zimbabwe is back in the black after recording a profit of ZWL$836.5m in the full year ended February 2021 from a loss of ZWL$5.7bn in the comparable period last year propelled by increased data usage on Covid-19-induced lockdowns.
The Covid-19-induced lockdowns have seen companies employing the “work from home model” leading to an increase in data usage.
In a statement accompanying the financial results, Econet chairman James Myers said the evolving of the business into a digital and futuristic has helped Econet to succeed during the financial year under review.
“Revenue increased to ZWL$35bn, an increase of 23% from the previous year, largely due to the increase in data usage, which increased by 47%,” Myers said.
“Improving operational efficiencies and continued cost containment measures yielded positive results which saw the earnings before interest, taxation, depreciation and amortisation margin increase to 52%,” he said.
Econet net exchange losses decreased by 46% to close the year at ZWL $13.7bn.
Capital expenditure investment remains subdued due to the scarcity of foreign currency.
Myers said the company balance sheet has been bolstered by its investment, of about 7% of Liquid Telecommunications Jersey, a pan-African fibre operator, which is now valued at US$145m.
The company has declared a final dividend of ZWL$0.60 per share for the year ending February 28, 2021.
