Mobile network operator, Econet Wireless after tax profit for the year ended February 28 made a giant leap of 265 percent to $132.3 million compared to $36.19 million in 2017 largely as a result of cost cutting measures implemented in 2015 which are beginning to bear fruit.
In a statement of the financials, chairman James Myers said revenue increased 34 percent to $831.6 million compared to $621.7 million during prior year underpinned by strong performance across all subsidiaries.
“Austerity measures that we started implementing in 2015 have yielded exceptional results which led to improvement in our margins,” he said.
Earnings before interest, taxes, depreciation and amortization (EBITDA) margin firmed to close the year at 41 percent compared to 36 percent last year.
Myers said the company no longer had any foreign currency external US dollar denominated amortizing debt following a controversial Rights Offer last year which raised $130 million. As a result, the debt to equity ratio of the group is now 8 percent compared to 18 percent last year.
The group’s capital expenditure to revenue ratio increased to 12 percent against a prior year comparative of five percent mainly driven by critical network acquisitions to improve service delivery.
“The increased expenditure was partly to address the under-investment from the previous period. We continue to seek solutions to address the investment gap so that we consistently provide world class services to our customers,” he said.
Total dividends for the year amount to $60 million, equivalent to 2.3562 US cents per share.
Under its Telecommunications, Media and Technology (TMT) strategy, Myers said having transformed the company into a fully converged technology business, voice and SMS services declined 40 percent of total revenue.
Econet now has over 1.2 million subscribers signed up for youth specific product offering. – The Source
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