Econet Wireless Zimbabwe reported an impressive 56% surge in data usage and a 36% increase in voice services in its half-year results for the six months to August 31, 2024.
The results also reveal a 26% jump in capital expenditure to revenue, up from 10% in the prior period, as the company ramped its aggressive 5G network expansion.
The company’s latest financial results, released early this week, show that the mobile and technology giant’s data services now account for 47% of its total revenue, underscoring a progressive shift to data and digital services by its customers in line with global trends.
James Myers, Econet Wireless Zimbabwe’s chairman, attributed the company’s robust growth to strategic investments in network modernization.
“The evolution of customer preferences, from traditional services like voice and SMS to data-driven platforms, demands that we remain innovative and invest in cutting-edge infrastructure,” said Myers.
“This ensures we deliver exceptional customer experiences while maintaining service reliability.”
In the period under review, Econet registered a strong financial performance, with revenues rising by 7% to ZWG 5 billion. At the same time, profit after tax climbed to $347 million, up from $272 million in the prior comparable period last year.
An emerging key aspect of Econet’s strategy is its aggressive 5G network expansion. The company reported that it deployed 32 new 5G base stations in Harare during the reporting period and plans to drop 120 additional 5G base stations by year-end, underlining its position as a regional leader in next-generation digital connectivity.
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Despite the arrival of global competitors such as Elon Musk’s Starlink on the Zimbabwean market in September this year, Econet has maintained market confidence, with analysts saying the company's consistent growth in both data and voice volumes bodes well for its future.
In the half-year period, Econet also strategically expanded its portfolio by acquiring financial technology businesses from EcoCash Holdings. The move diversified its revenue streams and boosted its customer offerings.
The mobile money business was a standout performer, recording a 26% revenue growth, driven by a 47% rise in wallet funding, fuelled by payroll deposits, cash-in transactions, and international remittances.
“This growth reflects the strides we are making in advancing financial inclusion across Zimbabwe,” Myers said, noting plans to onboard more payment partners for a seamless customer experience.
Econet’s InsurTech segment delivered a modest 3% revenue upturn, supported by affordable funeral cover offered via mobile platforms. Its short-term insurance business also saw solid growth, bolstered by new client acquisitions.
“Our favourable claims ratios, compared to industry benchmarks, highlight our operational efficiencies and effective risk management,” said Myers.
Going forwards, Econet says it is embracing emerging technologies, with plans to integrate artificial intelligence (AI) into its operations.
Myers highlighted the potential of AI-driven solutions to enhance personalized customer interactions and optimize network performance through real-time analytics.
“The ongoing modernization of our network, coupled with the expansion of our 5G footprint, positions us to offer faster, more reliable services,” he said.
The company also demonstrated its commitment to delivering value to its shareholders by declaring and paying interim dividends of 0.41 US cents and 0.26 US cents per share.
