ECONET Wireless Zimbabwe has recorded an 8% growth in revenue for the year ended February 2013 largely driven by the growth in data and overlay services.
Business Reporter
Announcing the results for the year ended February 2014, Econet Wireless Zimbabwe chief executive officer Douglas Mboweni said revenue for the year had grown 8%, largely driven by the growth in data and overlay services while voice revenue growth had remained flat as voice had now matured.
Mboweni said that with penetration now in excess of 103%, new customers coming onto the network were no longer able to contribute significantly to growth in revenue.
“Everyone in the country who wants service now has it. So, although we added over 780 000 new subscribers over the last 12 months, they did not help to increase revenue.”
He pointed out that broadband and new services such as EcoCash were growing rapidly, and were helping to offset the slowdown in SMS.
Broadband grew by 62% and EcoCash by 307%, contributing more than 14% to the overall revenue for the year.
“When you reach more than 100% penetration of service in any country, it means that virtually everyone now has a phone. This situation is not unique to Zimbabwe. It has happened elsewhere, and so we had long anticipated it and had begun to invest heavily in new services. We are beginning to see the fruit of that work,” he said.
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For the period under review, Econet has declared a dividend of 1,29 cents per share to its 9 000-plus shareholders for the first time in more than three years.
Mboweni, however, said the company had paid out more than $900 million to the government in taxes, fees and duties over the last five years and was the only operator that has paid the full licence fee of $137,5 million to the government for the renewal of its licence.
In terms of the results, Econet Wireless Zimbabwe, which operates only in Zimbabwe and also owns Mutare Bottling Company and Steward Bank, posted a turnover of $752,7 million for the 12 months, from which it generated a profit after tax of $119,4 million.
Mboweni said only $20 million of the profit would go to pay dividends and the balance would be reinvested in the business and used to pay off loans from international banks.
He added that the company was currently repaying $228 million in debts to various international banks.
