NetOne, a State-owned enterprise and Zimbabwe’s second largest mobile operator by subscriber numbers recorded a gross profit of $34,6 million in the first quarter of 2016.
According to BH24, these figures were shared by NetOne’s acting CEO, Brian Mutandiro while addressing the Parliamentary Committee on ICT.
In the same review period NetOne registered $48, 5 million in revenue, which is an improvement from the $44.3 million registered in the first quarter of 2015. The positive performance could mark a rebound for the operator that recorded a $3 million loss in 2015 which was led by a $5.8 million loss in the first half of the year.
These numbers put NetOne’s daily revenue for 2016’s first quarter at an average of $538,888 per day. In his address, Mutandiro mentioned how NetOne’s average daily revenue now stands at over $300,000 a day up from $250,000 a day at the beginning of the year.
NetOne has enjoyed significant growth in the past year and a half in terms of network expansion and subscriber numbers. At the beginning of the year, it had 4,1 million active subscribers which represented an 8.8% increase from the totals in the third quarter of 2015.
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16 comments
Cooked up figures to make sure Kangai never returns maybe, not that l want him to return…..
They are indeed cooked up, NetOne revenue for the 1st quarter is below $30million dollars
http://www.financialgazette.co.zw/netone-loss-widens-to-us22-million/
the correct position
Those who say these are cooked up figures may they kindly give us correct figures since they seem to know correct figures. Calculations can show that these figures translate to average revenue per user of $2.96 and someone says these are cooked figures meaning to say NetOne is making way below that amount in average revenue per user. People should desist from making unnecessary statements just for the sake of it. if one doesnt have correct facts its better to keep quiet
http://www.financialgazette.co.zw/netone-loss-widens-to-us22-million/
So $48.5m – $34.6m= $13.9 cost of sales in one quarter yet you haven’t made a profit in the past. OMG! Are you being real?
@ techzim. Please NO. Why on earth try to be funny. Gross Profit shuwa here.
For those serious people here is what happened.
Netone made a net Loss of $2.1 million from $1.1 the previous period.
Accounting 101- gross profit excludes expenses like salaries, rents, running cost like fuel, vehicle service, taxes, interest payments and all other overhead cost you can dream of.
To put Gross Profit in the headlines is just wrong
Thanks for that feedback and correction Justin. Some adjustment has been made to the article.
Very very misleading article Nigel. Gross Profit especially for Telecoms is so misleading. The definition of Cost of Sales (where Gross Profit = Revenue less Cost of Sales) is so thin and subjective in service industries. Furthermore a company can still make a healthy GP but make a huge loss as bottom line. This guy is misstating facts big time and it’s totally unacceptable to relate performance to GP only without referencing to the Net Profit.
Sorry for the misleading title and thanks for the clarification.
This Nigel guy needs to be serious. Where on earth can you use Gross Profit as a measure of profitability without also looking at the operating income/profit or loss. Telecel is struggling to hit $15 million in gross revenue per quarter and Net One with all its inefficiencies grossing up $48, million? Unbelievable!!
Common metrics in telecoms include:
EBIDTA – which was 25% down.
Operating Profit(Loss) – operating loss almost doubled, which means the performance worsened than last year. Payment of a dividend to government remains a pipedream whilst the new management continue to milk the bleeding parastatal through their obnoxious salaries of over $20,000 per month for each executive or senior manager.
ARPU – average revenue per user. It’s pointless to have 10 million subscribers who bring an average of $1 per day!!!
“10 million subscribers who bring an average of $1 per day!!!” I will gladly start my own telecom company!!!!!!!!!
Sorry, typo meant $1 per month!!!!
Thanks for the feedback.
Let’s be fair to Nigel here. What he reported are the figures that the Acting CEO shared to a Parliamentary Portfolio Committee. I doubt they would have shared their net profit position if he had called NetOne. All that can ever be reported is what they decide to share voluntarily.
http://www.financialgazette.co.zw/netone-loss-widens-to-us22-million/