Econet Wireless, a Zimbabwean cellular mobile network, has recorded a 25 percent growth in after-tax profit of US$141 million (about R987 million) for the year ended February 28.
The privately owned Econet Wireless posted the positive results following its strong subscriber base of over five million customers coupled with expanded services from across the country.
In the previous year – 2009 / 2010, Econet Wireless posted US$113million (about R791million) after-tax profit.
Econet Wireless, which holds millions of shares at Meikles Limited and Kingdom Financial Holdings Limited, both of which are heavily invested in the construction of base stations nationwide with a view to boost connectivity.
Econet’s fruitful results are built on strong growth in EBITDA (earnings before interest, tax, depreciation and amortisation), which jumped from US$179 million to US$243 million in the 12 months to February 2011.
Earnings per share also jumped by 26 percent from US$660 000 in the full year to February last year to US$830 000 in the last financial period.
Among other contributing factors which led to the high profit generation are network upgrades, enhancement of data capacity and value added services introduction of 3G and other services.
By Mercy Mujuru
Econet’s performance on the Zim market is a perfect example of a shielded monopoly whose dismal services do not match their profits performance. Remove government collusion which protects Econet and bring in outside competition offering quality services and Econet’s profits will evaporate into thin air. Ever wondered why Econet fails to replicate that profit performance in other markets it competes in? No government collusion to protect it!