NetOne has confirmed the restructuring of the company, saying a number of outsiders will be roped into key positions as part of the overhaul at the country’s second largest mobile operator.
By Business Reporter
Despite being the first mobile phone service operator to be licensed in the country in 1996, NetOne is now a fraction at the size of Econet, which came in two years later.
In a statement accompanying NetOne’s financial results for the six months ended June 30, board chairman Alex Marufu said the company had embarked on an exercise to transform the organisation.
The transformation is premised on the ability “to innovate, to develop products, to efficiently take them to market and profitably manage the operations of the business”.
“This exercise will see a number of new faces with diverse backgrounds joining the business in the second half of the year,” he said.
Marufu said in the outlook, NetOne would pursue “an aggressive strategy to grow, not just through user number growth, but also network utilisation and through a broadened product range”.
He said the mobile operator would pursue a hawk-like focus on cost containment to drive profitability .
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“Stability of the business will come from compliance with our own governance structures from board level to the shop floor, from developing our people to ensuring continuity, succession planning, disaster recovery planning and other such measures,” he said.
Marufu said sustainability of the business would come from “a ruthless pursuit of innovation in all areas that matter to the people of Zimbabwe; be it in transport, farming, education or manufacturing”.
“NetOne should be at the forefront of making Zimbabwe profitable. As a wholly government-owned business, we are not oblivious to our development obligations, and will continue to walk the fine line of striving for profitability and supporting the government development initiatives,” he said.
In the six months ended June 30, revenue rose by 13,8% to $57,8 million over the same period last year.
Earnings before interest deductions, taxation and amortisation were at $10,39 million during the period from $9,6 million last year.
“We will continue to manage our costs to improve these ratios,” Marufu said.
Capital investment in the first half was $5,59 million an increase of 66% from the previous period.
Marufu said the company would continue to invest in capital projects in order to improve market efficiencies.