Home » Education » ZIMBABWE TELCO ECONET REPORTS LOWER NET PROFIT OF 36 MLN USD

HARARE, Zimbabwe's biggesttelecommunications company, Econet Wireless, has announced a bet profit of 36 million US dollars for the year ended February, 2017, down from 40.2 million USD the previous financial year on the back of a drop in revenue.

The mobile operator saw income dropping three per cent to 622 million USD during the year, attributed to the tough economic environment. The company declared 12.1 million USD in dividend payments which will see shareholders being paid 0.467 cents per share.

The strong focus on revenue diversification, stringent cost management as well as developing a corporate culture of disciplined execution and accountability has helped us to limit both a revenue and margin decline, while continuing to maintain our customer-centric focus, Econet Chairman Dr James Myers said in announcing the results here Wednesday.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) also declined in line with the drop in profit after tax to 224 million USD from 238 million USD in 2016. The company cut capital expenditure to 32.5 million USD from 82.8 million but its subscriber base rose to 10,268,890 from 10,019,870 previously.

Dr Myers said revenues from voice calls, once a cash cow, continued to decline as consumers switched to cheaper data applications. The data and mobile financial services segment increased its contribution to group revenue to 32 per cent from 14 per cent the previous year.

He said Econet was now in a stronger position to deal with the challenges in the operating environment after it had successfully mobilised 130 million USD through a rights offer in the first quarter of the year to pay off its foreign creditors.

Source: NAM NEWS NETWORK

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