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Econet Zimbabwe profits down by 42% to $40 million as operator faces challenges in environment

Econet Wireless HQ
   

Local mobile operator Econet Wireless is currently holding its analysts’ briefing where it has released the figures for the 2015 to 2016 financial year.

Though the full briefing is yet to be released some of the highlights have been shared by analysts on Twitter and they indicate a pattern similar to the previous year’s performance which was weighed down by challenges in a tough operating environment.

  • Revenue for the year was down to $641 million which was a 14% decrease from the previous year’s $746 million income total
  • Earnings Before Interest and Tax (EBITDA) declined from $286 million to $238 million this year¬†
  • Proft after tax stood at $40 million which is a decline from the $70 million last year
  • Revenue from broadband services has continued to grow, albeit at a much slower rate(9.7%) than last year(43%) It has increased by $10 million from $103 million to $113 million.
  • Broadband services contributed 18% to the group’s total revenue which is a 4% increase from the previous year’s 14% contribution
  • Mobile financial services contributed $87 million in the past year,which was an increase from the $73 million in the previous period. EcoCash, the main service in this line handled transactions valued at $6.6 billion, a 20 percent increase¬†from the $5.5 billion handled in the previous year.
  • Econet has reduced its investment with capital expenditure dropping from $125 million in the previous year to $83 million in the latest period.

Update – In an earlier version of the article, we stated that EcoCash revenues for the year declined from $87 million to $73 million, which was incorrect. EcoCash revenues actually increased from $73 million to $87 million.

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