State-owned mobile network operator, NetOne, recorded a US$10 million profit in 2018 from a loss position of US$77 million in the previous year driven by an increase in revenue and improved efficiency.
Chief executive Lazarus Muchenje told an annual general meeting yesterday that cost containment measures resulted in a 21% decline in overheards margin.
During the period under review, the company’s revenue grew 13% to US$119,2 million.
“The year 2018 witnessed the resurgence of NetOne as the leading network of choice in Zimbabwe, with a historic $88 million turnaround from a loss position of
$77 million in 2017, to a profit of US$10 million in 2018,” Muchenje said.
Earnings Before Income Tax Depreciation and Amortisation more than doubled to US$38,2 million from US$15,1 million in the previous year.
“Network availability is operating optimally at 99% from 95% prior to April 2018. The improvement in network quality has been a result of refarming of 137 2G
sites across the country, thereby availing 3G services to these areas without the need to invest in additional hardware,” he said.
NetOne’s mobile financial service platform, OneMoney, recorded a 2,5% growth in market share, achieving 1,2 million subscribers.
The company opened 628 franchise shops to complement its existing network of 34 NetOne shops across the country.
According to an industry performance report for the first quarter of 2019 by the Postal and Telecommunications Regulatory Authority, NetOne had 2,6 million
subscribers down from 3,2 million in the last quarter of 2018.