Econet increase revenue by 14% to $695 million

Published: 10 June 2013

Econet's revenue for the year ended 28 February 2013 was $694.8 million, an increase of 14% compared to the previous year. Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) recorded a margin of 44%. Depreciation and amortisation increased by 54% to $71.6 million in line with growth of the asset base. Finance charges increased due to finalisation of the multi-creditor facilities in the year under review. (Download Econet results here)

Total assets surpassed the $1,0 billion mark as of reporting date, registering a growth of 25% from last year. The debt to equity ratio improved to 54%, from 65% as at 28 February 2013. The Group increased its investment in TN Bank Limited from 45% {an associate as at half year) to 98.6% (a subsidiary). This investment has been accounted for as a subsidiary from the date control was assumed, on 31 January 2013.

EcoCash subscribers increased by 62% from 1.3 million to 2.1 million subscribers. The agency network that supports the EcoCash business witnessed a growth of 242% to close at over 3,000 agents thereby creating further employment opportunities and improving the national payments system. Under the EcoCash service offering, new services were introduced which include: bill payments, bulk payments, merchant services, as well as banking-related facilities. The provision of banking-related services necessitated the integration of most of the banks in Zimbabwe onto the EcoCash platform. Through this integration new features such as the bank to wallet functionality that allows banked customers to transfer money from their bank account to their mobile wallet were launched. Further to this the EcoCash debit card which facilitates payments to retailers and other merchants was introduced. These innovations introduce a greater level of convienence to our subscribers and makes the technology relevant for their day to day lives.

Another first by the Company was the introduction of the exciting "Buddie Zone" a service that allows customers to receive exciting dynamic discounts for voice calls. This innovative concept has allowed for network resources to be more optimally utilised.

Broadband continues to gain popularity due to its high speed and the most extensive coverage of any operator in Zimbabwe. Data subscribers increased by 52% from 2.1 million to 3.2 million in the year under review.

The Green Kiosk initiative continued in the year under review. Under this initiative traders have the opportunity to merchandise airtime, accessories, lanterns and other products. This is yet another example of how the Company is transforming the lives of ordinary people by giving small traders an opportunity to retail the Company's products and creating for them unique opportunities to better their lives. At the same time this initiative allows the provision of free solar powered phone charging solutions to subscribers who have limited or no access to grid power.
- Byo24News

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