Plastic money a blessing………as Econet records profit in revenue.
The cash shortages in the country have affected many businesses and individuals in the country. Both the US dollar and the bond is rapidly disappearing in the market. This has affected a lot of things in the market as far as buying and selling are concerned. However, in trying to save the ship from sinking, there have been measures put in place to try and smoothen the flow of transactions in the market. Plastic money has become the ideal solution in transactions.
Supermarkets, hardware, schools, hospitals, busses all have resorted to plastic money services due to cash shortages. This has been a blessing to the mobile operators as many transactions are now done using the mobile phones. There has been a significant increase in revenue for the mobile operators. In their unaudited abridged financial results for the half year ended 31 August 2017, Econet recorded a whopping 63% of revenues through non-voice revenues.
These things are the transactions done by Econet subscribes on paying for different services using Econet services. In a statement, Econet revealed that “Revenue for the half year ended 31 August 2017 increased by 17% from US$ 301.5million to US$ 352.7 million. Our non-voice business segments continue to deliver solid growth.
As we execute our TMT strategy and diversify our revenue streams, we have experienced growth in non-voice revenues, which now constitute 63% of total revenues.” This has to help the mobile operating company to repay its US Dollar debt with the funds raised from the Rights Offer, as it managed to reduce its finance costs for the half year ended 31 August 2017 by US$ 10.7 million. This, therefore, means, with this increased revenue and a decline in interest costs as well as cost optimization initiatives resulted in an increase in profit after taxation.