TELCO, Econet Wireless Zimbabwe (Econet) overturned its losses to post a profit after tax of ZiG2,34 billion for its financial year ended February 28, 2025, owing to a net monetary adjustment and reduction in exchange losses.
This was from a loss of ZiG1,34 billion in the comparative 2024 period.
During the period, Econet recorded a net monetary adjustment of ZiG872 million compared to a prior year loss of ZiG2,16 billion.
Further, exchange losses were down 47,15% to ZiG2,08 billion compared to the prior year as a result of better stability of the ZiG as the monetary authorities continue to control its value.
During the period, the firm also managed to post a 23% increase in revenue to ZiG22,2 billion from the prior year, as voice and data usage were up 23% and 36%, respectively.
In a statement attached to the group’s financial year results for the period ended February 28, 2025, Econet chairman James Myers said the growth in voice and data was enabled by the telco’s modernised network.
“Our earnings before interest, taxation, depreciation and amortisation margin softened to 47% from 48%. As we accelerate our digitisation journey, we are adopting AI into our processes to enhance operational efficiencies and drive cost productivity,” he said.
“The improved revenue performance enabled the business to continue investing in our network infrastructure, a catalyst to drive revenue growth and data usage which is forecast to continue on an upward trajectory in line with global trends.”
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He said capital expenditure for the year was 16% of revenue against a prior year comparative of 17%.
The mobile money business, EcoCash, recorded growth of 21% and 210% in transaction volumes and values, respectively, anchored by customer and wallet funding increases.
“EcoCash continued to actively drive initiatives to increase cash-in transactions and international remittance receipts,” Myers said.
“Efforts to onboard more payment partners are ongoing, as the business aims to establish a global payment platform that prioritises convenience and value for customers.”
Meanwhile, the insurance businesses Econet Insurance (Moovah), EcoSure and Maisha Health achieved a 35% year-on-year (Y-o-Y) revenue growth.
“The life insurance business recorded a 51% Y-o-Y growth in revenue as it continues to offer digital bundled products for wider customer reach,” Myers said.
“Growth in revenue for the short-term insurance business against prior year was driven largely by new business acquisitions and endorsements which saw a 15% increase in motor and non-motor customers.”
Last year, Econet reacquired its previously unbundled fintech businesses, that is, EcoCash (Private) Limited, VAYA Technologies Zimbabwe (Private) Limited, Econet Insurance (Private) Limited, Econet Life (Private) Limited, MARS Zimbabwe (Private) Limited and Maisha Health Fund (Private) Limited.
During the period under review, costs and expenses amounted to ZiG12,72 billion compared to a prior comparative of ZiG9,6 billion.
Of major concern, however, was Econet having just ZiG0,78 to every ZiG of short-term debt as of February, indicating the firm would struggle to fund its capex during the current year.
Total assets amounted to ZiG23,65 billion, a 59% increase from last year.
“Looking ahead, leveraging innovation and deepening AI infusion into our operations to enhance operational and cost efficiencies will position the group to grow, diversify our product and service offering, and drive revenue growth while protecting our margins,” Myers said.
“The group will continue to make investments in digital transformation, embracing new technologies and actively pursuing strategic opportunities to enhance and complement our product portfolio.
“By harnessing the power of AI [artificial intelligence], we aim to create seamless experiences for our customers across all business segments.”
