Econet revenue falls 3 percent

Econet-Wireless

Econet-Wireless

Business Reporter
ECONET Wireless Zimbabwe’s revenue for the year ended February 28 dipped 3 percent to $621,70 million, largely due to declining voice revenues.

The country’s largest mobile telecommunications network, however, saw the rate of revenue decline slow down from 14 percent recorded in the same period last year.

Profit after tax retreated 10 percent to $36,188 million from $70 million a year earlier, after the company’s voice revenue calls took a huge hit in that year.

Earnings before interest tax depreciation and amortization declined to $224 million, from $238,4 million, a decline of 6 percent. However, Econet said that “even under these challenging conditions, at 36 percent, the EBITDA margin remains competitive”.

Earnings Before Interest and Tax had declined from $286 million to $238 million in 2016, nearly 17 percent retreat in EBITDA on prior year.

The company declared a dividend of 0,467 cents per share amounting to $12,1 million for the year ended 28 February 2017,48 percent lower than the dividend it managed the prior year, of 0,9 cents.

Following its successful $130 million rights offer, the mobile network said it is now in a stronger position to deal with the challenges of operating in an increasingly more difficult economic environment.

Econet said its business model, anchored on responding pro-actively to the changing economic and technological environment, remained an anchor to continue to develop future strategies.

“The technical infrastructure of the company is a key strength on which we will leverage for our future growth. Our pioneering spirit means that we will continue to explore new ways to use technology to solve relevant problems that society is confronted with. We believe this is one of the hallmarks of our success,” chairman Dr James Myers said in its results statement.

The mobile telecommunications operator said its strong focus on revenue diversification, stringent cost management as well as developing a corporate culture of disciplined execution and accountability had helped the business to limit both revenue and margin decline.

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