Econet Wireless Zimbabwe has reported a remarkable 56% increase in data usage and a 36% growth in voice services for the six months ending 31 August 2024, reflecting a strong shift towards digital and mobile connectivity.
The company’s half-year results, released earlier this week, also highlight a significant rise in capital expenditure, which surged to 26% of revenue compared to 10% in the previous period. This increase underscores Econet’s aggressive expansion of its 5G network as it consolidates its position as a leader in next-generation telecommunications.
Data services now contribute 47% of Econet’s total revenue, a clear indication of the growing preference among customers for digital services in line with global trends.
Econet Chairman James Myers attributed the company’s growth to strategic investments in modernising its infrastructure. “The evolution of customer preferences, from traditional services like voice and SMS to data-driven platforms, demands that we remain innovative and invest in cutting-edge infrastructure,” Myers said. “This ensures we deliver exceptional customer experiences while maintaining service reliability.”
Financial Highlights
Econet reported a 7% increase in revenue to ZWG 5 billion during the period under review. Profit after tax rose to $347 million, up from $272 million in the same period last year.
A key pillar of Econet’s strategy is its extensive 5G rollout. The company deployed 32 new 5G base stations in Harare during the reporting period and plans to establish an additional 120 by the end of the year. This solidifies Econet’s standing as a regional leader in digital connectivity, despite the recent entry of competitors like Elon Musk’s Starlink.
Expanding Financial Technology Portfolio
Econet also expanded its portfolio by acquiring financial technology assets from EcoCash Holdings, diversifying its revenue streams and strengthening its offerings.
Mobile money services proved to be a standout performer, recording a 26% revenue increase, driven by a 47% rise in wallet funding. This growth was supported by payroll deposits, cash-in transactions, and international remittances.
“This growth reflects the strides we are making in advancing financial inclusion across Zimbabwe,” Myers said, adding that the company plans to onboard more payment partners to enhance customer convenience.
InsurTech and Emerging Technologies
Econet’s InsurTech division posted a modest 3% revenue growth, driven by affordable funeral cover products offered via mobile platforms. The short-term insurance segment also performed well, with robust client acquisitions bolstering revenue.
Looking ahead, Econet is integrating artificial intelligence (AI) into its operations to enhance customer experiences and optimise network performance. Myers highlighted AI’s potential to deliver personalised interactions and real-time analytics, ensuring greater efficiency.
Dividends and Shareholder Value
Econet demonstrated its commitment to shareholders by declaring interim dividends of 0.41 US cents and 0.26 US cents per share.
“The ongoing modernisation of our network, coupled with the expansion of our 5G footprint, positions us to offer faster, more reliable services,” Myers said, expressing confidence in the company’s ability to sustain its growth trajectory.
With its continued focus on innovation and strategic investment, Econet remains poised to capitalise on Zimbabwe’s digital transformation and maintain its leadership in the telecommunications sector.