Econet profit down 37 percent

Finance costs decreased by 28 percent to $15 million in comparison to the prior year.

Total assets stood at $1.190 billion from $1.196 billion as at 29 February 2016.

The company’s wholly-owned subsidiary, Steward Bank, also reported profit was 38 percent up to $2.6 million.

The company’s number of connected subscribers went up by 9 percent to 10 million.

Econet closed the first half in a robust cash position, with $143 million in the bank, but the company bemoaned the ongoing cash crisis in the economy.

“Although the cash position continues to be healthy, the nostro funding constraints being experienced by all local banks have adversely affected our ability to meet US dollar denominated commitments on time,” Econet said.

The company, which spends 23 cents of every dollar it collects as revenue in VAT, excise duty and licence fee payments in addition to corporate tax, duty and levies to various statutory bodies, says it has paid a cumulative $1.2 billion to government and these statutory organisations since 2009, when the country dollarised.

Meanwhile, Econet has been granted permission to defer its annual general meeting (AGM) to January 2017.

The AGM, supposed to be held six months after the firm’s February 29, 2016 year-end, was initially scheduled for July, but the Registrar of Companies has allowed the firm to push it to January, on a date yet to be finalised.- The Source

(65 VIEWS)