Econet welcomes Mnangagwa's approach

Published: 30 May 2018

Econet Wireless Zimbabwe said it welcomes the approach ushered in by the President Emmerson Mnangagwa government to focus on driving investment in the economy as an enabler to economic growth and job creation. It said it is more than ready to play our part in working towards a more prosperous Zimbabwe.

This statement is in Econet's 2018 full year results release.

Econet released a buoyant set of results as the group reported a giant leap in profitability to $132 million for the year to February 2018 from $36 million largely driven by fintech. Fintech revenue was up 120% to $244.7 million while data revenue rose 18% to $144.8 million.

According to management, "Austerity measures that we started implementing in 2015 have yielded exceptional results, resulting in the improvement of our margins."

The EBITDA margin firmed to close the year at 41%, an increase from 36% in the previous year. The debt to equity ratio of the Group is now 8% against a prior year comparative of 18%. The Company no longer has exposure to any foreign currency external US$ denominated amortising debt, following the Rights Offer.

The capital expenditure to revenue ratio increased to 12% against a prior year comparative of 5% mainly driven by critical network acquisitions to improve service delivery. The increased expenditure was partly to address the under-investment from the previous period.

The Company has declared a final dividend of 0.3927 US cents per share amounting to US$ 10 million for the year ended 28 February 2018. The total dividends declared for the year amounts to US$ 60 million, equivalent to 2.3562 US cents per share.

Management said, "20 years later, we now have a resilient business anchored on our robust business model. A business model which we have replicated across different industry sectors with remarkable results. Our customers have validated the strength of this business model by their increasing confidence in our products and services and this is demonstrated in these results. It takes time and patient effort to build businesses that are founded on strong foundations. As we continue to refocus our business, and develop solid foundations for our new businesses, we are confident that our technology driven approach to agriculture, health, education, commerce, media and insurance will yield increasing value for our shareholders."
- BusinessDaily