Recently we talked about the legacy debt that has been affecting TelOne, the state owned telecoms operator, but hadn’t really explored the performance of the company.
It’s great that parastatals are now going to be sharing their results and its especially encouraging when the numbers are positive, as was the case with TelOne this past year.
For the period ending 31 August 2015 the operator managed a 187.1% increase in profit before tax from the previous year’s $6,2 million to end the 2015 financial year on $17,7 million.
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Revenue for the year came to $162 million, representing a 7% increase from last year’s $152 million.
The positive numbers are attributable to TelOne’s increased focus on internet services, which incorporated not only its old ADSL suite, but was also extended to include a Fibre to the Home offering, along with a metro WiFi service. Voice revenue from the TelOne fixed line business unit also weighed in strongly to total revenues.
The biggest issue for TelOne is clearly the management of funds it is owed and at the 31st of August, its total debtors were $266 million. This comprised $88,6 million attributed to corporates, $80,1 million to household accounts, $41,5 million owed by parastatals, $46,8 million owed by the government and an additional $9,6 million attributed to other entities.
Chipo Mtasa, the CEO of TelOne has mentioned plans to migrate to prepaid systems to avoid similar challenges with the collection of debt, something that has created an additional focus area for the operator as it focusing on improving its performance.