Econet sees revenues and profits plummet in first half

16 Oct 2015

Zimbabwe’s Econet Wireless has announced a 17.7% drop in revenues for the six months to 31 August 2015, from USD392.3 million in 2014 to USD323.0 million this year. Profit for the period fell 52% to USD23.8 million, while EBITDA dropped 21% to USD122.5 million. The mobile operator has attributed the declines to Zimbabwe’s ongoing economic problems, as well as regulatory factors, including an enforced cut in mobile tariffs of 35% which was implemented at the start of the year and a new 25% tax on mobile devices. As part of a raft of cost-cutting measures, over the past few months the cellco has slashed wages by 20% and negotiated a 15% cut in fees with its suppliers and business partners, though it says the full effects of these reductions will not begin to be seen until its next set of financial results. Econet claims over nine million registered mobile subscribers, though market regulator POTRAZ says its active user base is closer to seven million.

Zimbabwe, Econet Wireless Zimbabwe (incl. ZOL, Liquid Telecom)