Econet celebrates 20 years with stellar financials

ECONET last week celebrated 20 years in business with a solid set of financial results for the year ended February 2018.
The listed telecommunications company reported revenues of $831 million and a profit after tax of $132 million, representing significant gains from revenues of $621 million and a profit of $36 million, last year.
The company’s operating margin firmed to close the year at 41 percent, an increase from 36 percent in the previous year.
Board chairman James Myers said the positive performance was on the back of austerity measures that the company has been implementing in the past three years. “Austerity measures that we started implementing in 2015 have yielded exceptional results, resulting in the improvement of our margins. Our revenue increased to $832 million, largely driven by strong performance across all subsidiaries,” Myers said in a statement accompanying the company’s results.
The group chairman relished the company’s 20-year journey that has seen it evolve from being a mobile voice telephony operator to become a “fully-converged” telecommunications, media and technology (TMT) entity. He said the company has contributed significantly to the Zimbabwean economy over the years.
“Our contributions through fiscal and statutory payments have surpassed $1,5 billion in the period post the introduction of the multi-currency regime, in 2009.
“Local suppliers have received over $3,2 billion in payments from the business over the same period. The impact on employment creation and generation has been immense. We estimate that over 100 000 jobs have been created through direct and indirect activities of the company,” said Myers.
Econet says it pays 28,8 percent of its airtime revenue to government and its statutory bodies in the form of value added tax, excise duties, levies and licence fees.
This is in addition to paying for a 20-year operating licence, which cost the company $137,5 million in 2013.
Myers relished Econet’s role in mitigating the country’s cash crisis by establishing a cashless financial system, saying the company’s efforts had transformed the Zimbabwean financial system into one of the most digitised in the world.
“In collaboration with the monetary authorities, Econet played a critical role in averting the cash crisis through fostering the adoption of cashless payments using its mobile financial services solutions offered through EcoCash and Steward Bank. This has resulted in financial inclusion increasing to over 80 percent of the addressable population,” he said.
Econet has invested more than $1,3 billion in the financial technology space since dollarisation in 2009.
“… EcoCash has become a verb in Zimbabwe synonymous with making a mobile payment,” Myers added.
The company envisages that its TMT model will continue to flourish underpinned by “robust infrastructure, exceptional human capital, diverse product offerings and innovative culture”.
“As a significant investor in the economy, we welcome the approach ushered in by the government to focus on driving investment in the economy as an enabler to economic growth and job creation. We are more than ready to play our part in working towards a more prosperous Zimbabwe,” Myers said.
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