Econet EPS shoot up


Econet Wireless’ earnings per share (EPS) jumped 27% from 66 cents last year to 84 cents at the end of February 2011.

The company declared a dividend of 12,21 cents per share.

EPS indicates the profitability of the company during a certain period.

The company invested $270 million in network infrastructure over the past year, bringing total investment over the previous two years to over $430 million.

In a statement accompanying its financial results for the full year to February 2011, Econet said the investment in network infrastructure helped grow subscriber numbers 55% to 5,5 million customers.

The company said it would complete its network upgrade programme, a development that would allow Econet to focus on improvement and creativity in the areas of service quality and value-added services.

“The universal access to voice telephony services has largely been achieved. Econet is now focused on providing subscribers with access to pervasive data and value added services in line with international trends,” Econet said. “The business will now focus on optimising the current capital investments to enhance network quality and boost its data capacity and value added services.”

Econet said half of the SIM cards recently deactivated due to regulatory requirements had already been reactivated.

According to Postal Telecommunication Regulatory Authority of Zimbabwe 1,4 million Econet subscribers were cut off. Revenue for the year increased by 36% to $493, 5 million, an increase of $130, 7 million.

Total assets increased by $243, 9 million to $636,6 million, an increase of 62%.

The debt equity ratio of 86% is comparable to peer companies during their high growth phase.

Interest cover at over 30 times of EBITDA shows that Econet has strong cash flows to service its debt commitments. Econet recorded an EBITDA of $242,7 million, a margin of 49% of revenue. The growth in EBITDA was $63, 5 million, representing 35% growth over the past year.