$1,55bn Windfall for Econet Shareholders

HARARE – Econet Wireless Zimbabwe shareholders will receive over $1,5 billion after the firm declared 60 cents per share dividend for the half year to August 2021.

The mobile telecommunication company posted an after-tax profit of $8 billion, in historical terms, during the period under review, after a huge turn around from the $4 billion loss recorded in the same period last year.

Econet chairman James Myers said the dividend, which indicates the company’s commitment to deliver long-term shareholder value as well as reflects on its confidence in its financial position and ability to generate significant cash flows, will be paid on or about 16 December 2021.

According to the Zimbabwe Stock Exchange, Econet has 2 590 577,000 shares in circulation and this translates to $1 554 346 200 from a dividend of 60 cents per share.

“In the period under review, revenue increased by 95 percent to $29,6 billion, in inflation adjusted terms, anchored by the increased contribution of data services. Data revenue grew by 136 percent and our voice services revenue increased by 92 percent,” he said while presenting the group’s financial results.

“Aggressive cost management resulted in earnings before interest, taxation, depreciation and amortisation (EBITDA) margin improving to 55 percent from 47 percent in the comparative period,” he added.

The listed mobile network service provider’s exchange losses, arising from foreign currency denominated obligations, decreased from $15,2 billion to $481 million in the half year period.