- July 5, 2019
- Posted by: Myles Freedman
- Category: Finance, More Industry Insights
Econet Wireless Zimbabwe Limited posted a profit after tax of 106,4-million Zimbabwe dollars (ZWL$) in the year ended 28 February 2019 from a comparable figure of ZWL$132,3-million in 2018.
In a statement accompanying the company’s financial results, Chairman James Myers said the results under review included the performance of Cassava SmarTech Zimbabwe Limited over eight months.
“Econet continues to pursue data revenue growth initiatives in response to the increased use of internet services driven in part by the growth in adoption of smart phones by our customers, as the prices of these devices continue to fall. Strategic partnerships with key vendors remain a priority for the business”.
Myers noted that capital investment during the period was restrained because of forex liquidity challenges.
“Capital investment in infrastructure development was subdued for the period under review due to limited access to foreign currency. This has a negative impact on our ability to sustain a comprehensive service offering as we transition to a digital economy,” he said.
The company unbundled the Zimbabwe Stock Exchange-listed FinTech group Cassava SmarTech Zimbabwe Limited last year.
Cassava SmarTech is the holding company for Ecocash, Steward Bank, Steward Health and Econet Insurance.
Meanwhile, Econet paid a dividend of ZWL$50-million. Total revenue for the period increased from ZWL$831,6-million recorded in 2018 to ZWL$1,1-billion, according to the statement.
Revenue from demerged operations amounted to ZWL$328-million compared to ZWL$258-million last year.
Finance income more than doubled from ZWL$456-million to ZWL$1,4-billion in the period under review.
“The Group will continue to collaborate with smart technology businesses in Cassava SmarTech for separate value creation objectives whilst recognising and leveraging the synergies that have historically existed between the two separate entities,” Myers added.