Econet Profit Hits ZWG2.3 Billion Mark

By Rutendo Mazhindu - ZimNow Reporter

Econet Wireless Zimbabwe Limited has recorded a solid recovery, recording an inflation-adjusted profit after tax of ZWG2.35 billion for the year ended 28 February 2025, reversing a loss of ZWG1.34 billion recorded during the prior year.

According to the company’s audited financial results, revenue rose by 23 percent to ZWG22.2 billion, up from ZWG18.1 billion in the previous year.

Voice usage increased by 23 percent , while data usage saw a growth of 36 percent, attributed to enhanced network capacity and digital expansion.

Chairman Dr James Myers said the performance was underpinned by strategic investment in infrastructure.

“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,” he said.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) amounted to ZWG9.6 billion, reflecting a 10 percent year on year increase.

The EBITDA margin declined slightly to 47 percent, compared to 48 percentin the prior period.

During the financial year, Econet commissioned 77 new base stations, upgraded 546 radio access sites , improved 365 microwave access links , and deployed 60 5G sites.

The company also installed 10 lightweight base stations to boost connectivity in remote areas.

The group declared a final dividend of 0.73 US cents per share, bringing the total dividend for the year to 1.76 US cents per share.

Following the acquisition of financial technology entities from EcoCash Holdings with effect from 1 March 2024, the group consolidated new subsidiaries including EcoCash, VAYA Technologies, Maisha Health Fund, Econet Insurance, Econet Life and MARS Zimbabwe.

The FinTech segment contributed ZWG2.4 billion in revenue.

The life insurance business reported a 51 percent year on year revenue growth , while the short-term insurance unit saw a 15 percent increase in motor and non-motor customers due to new business endorsements.

The company’s financials were issued with an adverse audit opinion by BDO Zimbabwe Chartered Accountants due to non-compliance with IAS 21 The Effects of Changes in Foreign Exchange Rates.

“The effect of the non compliance with IAS 21 could not be quantified but is considered material and pervasive to the financial statements,” stated audit partner Mr Jonas Jonga.

Total assets increased to ZWG23.6 billion up from ZWG14.9 billion , while total equity rose to ZWG13.1 billion compared to ZWG9.6 billion the previous year.

Econet said it will continue its digital transformation strategy, including deeper use of artificial intelligence, to enhance efficiency and competitiveness.