HomeBusinessEconet rings up 266% profit

Econet rings up 266% profit


ECONET Wireless Zimbabwe Limited (EWZL) has registered a near 266% jump in profit after tax for the company’s financial year ending February 28, 2018 to $132,29 million on the back of cost-cutting measures.


The rise in profit is from $36,18 million recorded in the comparative period last year.

In a statement accompanying the results for the financial year ending February 2018, EWZL chairman, James Myers said they had continued remodelling and optimising their business, which improved margins.

“We continued remodelling and optimising the business to enhance shareholder value.

“Austerity measures that we started implementing in 2015 have yielded exceptional results, resulting in the improvement of our margins.

“The EBITDA (earnings before interest, tax, depreciation and amortisation) margin firmed to close the year at 41%, an increase from 36% in the previous year.

“Our revenue increased to $832 million, largely driven by strong performance across all subsidiaries,” he said.

The revenue rose from a previous $621,7 million recorded over the same period in 2017.

During the period under review, EWZL’s technology, media and telecommunication portfolios grew, translating to more revenue across the board.

“This is on the back of robust investment in our telecommunications infrastructure to drive digital delivery, creation of more technological products and services and the creation of Kwese TV,” Myers said.

“Also, Steward Bank adding more than 176 000 new customers, which increased transactions and thus improved non-interest income, helped increase revenue.”

The group’s EcoCash platform now has more than 50 000 merchants, which aided in overall revenue.

“The debt to equity ratio of the group is now 8% against a prior year comparative of 18%.

“The company no longer has exposure to any foreign currency external United States dollars denominated amortising debt, following the rights offer.

“The capital expenditure to revenue ratio increased to 12% against a prior year comparative of 5% mainly driven by critical network acquisitions to improve service delivery,” Myers said

The company said it has paid more than $1,5 billion in taxes since the introduction of multiple currencies in 2009.

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