Econet makes $49 million profit in six months

Econet Wireless reported a threefold increase in after tax profit to $48.9 million in the six months to August from $14.97 million recorded in the same period last year on increased revenue coupled with a marked decline in finance cost.

In April the company undertook a $130 million rights offer to pay a consortium of creditors — China Development Bank, African Export Import Bank, Ericsson and South Africa’s Industrial Development Corporation — just over $128 million.

In a statement accompanying financial results today chairman James Myers said repayment of the debt had reduced finance costs by $10.7 million.

Revenue increased by 17 percent from $ 301.5 million to $352.7million recorded in the previous year driven by non-voice services.

Non-voice revenue contributed 63 percent to the company’s total revenues.

Data revenue increased to $63.4million from $58.2 million recorded in the same period last year while revenues from the mobile money service, Ecocash, jumped from $39.2 million to $57.1 million.

The group’s banking subsidiary, Steward, reported an increase from $14.4 million to $28.4 million.

Earning before interest tax depreciation and amortisation (EBITDA) increased to $139 105 from $105 854 recorded in the previous year.

Total assets increased by 18 percent to $1.44 million from $1.22 million recorded in the previous year.

The board declared a dividend of 0.965 cents per share.- The Source

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