Econet Wireless Zimbabwe has released its audited abridged financial results for the year ended 28 February 2025, and there’s plenty to unpack.
Key Numbers (Inflation Adjusted)
- Revenue: ZWG 22.2 billion (↑23%)
- EBITDA: ZWG 9.6 billion (↑10%)
- Capital Expenditure: 16% of revenue
- EcoCash growth: Transaction values (↑210%)
- Insurance growth: Life insurance revenue (↑51%)
The numbers show a business stabilising after a rough period.
Major Takeaways
Econet bounces back into profit
Econet posted a net profit of ZWG 2.35 billion (inflation-adjusted), up from a ZWG 1.34 billion loss in the previous year. It’s always good to see.
Revenue grew by 23% to ZWG 22.2 billion, and has been the case for years, data usage was to thank for that. Data usage grew by a whopping 36% whilst voice usage rose a respectable 23%.
It’s official, data is now Econet’s biggest cash cow. Data and internet services brought in ZWG 9.26 billion, comfortably ahead of the ZWG 7.79 billion earned from voice (that’s local airtime, interconnection, and roaming combined).
Data and internet services revenue is about 19% higher than combined voice revenue now. Impressive stuff.
This rebound happened in the same period that Starlink began to make waves in Zimbabwe. While not mentioned by name in the report, the increased investments in infrastructure and competitive new services show that Econet is not taking any chances.
Econet’s side hustles: Fintech, VAS, and more
While data and voice bring in the big bucks, Econet’s other businesses are not duds.
Mobile money remains a heavyweight, pulling in ZWG 1.8 billion.
Value Added Services (VAS) and SMS weren’t left behind either, with a solid ZWG 1.44 billion contribution. Yes, people are still using SMS, especially when it comes to service notifications and one-time passwords.
That said, the fact that mobile money is not that far ahead of VAS and SMS is wild. I would argue this is more a sign of EcoCash falling from past heights than SMS racking it up. Fortunately for them, EcoCash grew in the year in question.
Insurance brought in ZWG 656 million after 35% growth, showing Econet’s push into non-traditional telco territory might gain traction after all.
Then there’s ZWG 1.06 billion from other service revenue streams and ZWG 188 million from handset and accessory sales. Not game-changers, but they add up nicely.
Is Starlink Pressure Showing?
While Econet didn’t explicitly talk about Starlink’s presence, their actions speak volumes.
Significant investments in network modernisation, expansion of 5G sites, and enhancing connectivity in underserved areas, along with a ‘focus on innovation and AI infusion to drive efficiency and diversify offerings’ show that Econet took proactive steps to strengthen its market position:
- 60 new 5G sites were rolled out in the last quarter of the year, and I think one could look at that as a defensive move to compete with Starlink’s high-speed, low-latency satellite internet.
- Econet set up 10 new base stations in rural areas, likely trying to secure its place in regions where Starlink’s appeal could be growing the fastest.
- The report focuses on upgrading the network, improving service quality, and offering more tailored services, things companies often do to stand out when competition gets tougher.
I would add that Econet deserves praise for recognising the threat the likes of Starlink pose and responding appropriately. While Starlink has had its capacity issues, it has nonetheless opened the door to a whole new way of offering internet services.
Econet responded with some new services like SmartBiz and Smart4You. I have used SmartBiz extensively and it has been brilliant for me, as it has for many others too.
The same goes for Smart4You bundles that offer a semblance of unlimited data to Zimbos for the first time ever. I just wish Econet would have given us subscriber numbers for both services.
Yes, these services could always be improved, as some complaints we see whenever we talk about them show, but they are a very good first step.
If these moves weren’t in response to Starlink, the timing is at least convenient.
EcoCash, back in the fold
As you may recall, Econet now includes Fintech services directly in its financials after bringing back EcoCash, Maisha Health, Moovah Insurance, and other units from EcoCash Holdings.
- EcoCash’s transaction volumes rose 21%, while transaction values grew by an impressive 210%. Could this mean a return to relevance for EcoCash? We shall see.
- The insurance arm saw 35% revenue growth, with the life insurance business alone growing by 51%.
Like we mentioned above, EcoCash revenues may have increased but they are now tiny when compared to the phone business.
Data and internet services revenue is about 5.15 times higher than mobile money revenue. It’s even worse if we consider the combined data + voice revenue. It is about 9.48 times higher than mobile money revenue.
No wonder EcoCash couldn’t really be a separate listed entity anymore.
AI and Operational Efficiency
AI was mentioned multiple times, especially in connection to operational efficiency and cost management. Econet is upgrading its internal systems to run more efficiently and cut costs, a smart move considering how much it’s losing to forex issues and inflation.
We shall see if AI allows Econet to truly improve on efficiency. Unfortunately, if they succeed in this, that could mean further job losses.
Good showing from Econet
Econet’s 2025 results show that the company is aware of rising threats, Starlink included, and reacting with infrastructure upgrades, rural expansion, and bringing mobile money back into the fold.
Whether that’s enough to hold off satellite internet and other disruptors remains to be seen, but Econet isn’t sitting idle.
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