NetOne’s swings back to profitability

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Netone

Zimbabwe’s state-owned firm, NetOne reported a profit of $10 million for 2018, after a loss of $77 million the year before as revenue jumped 13% to $119.2 million from $106 million.

Driving the growth in revenue was a 15% growth in subscribers to 3.3 million coupled by reengineering of the company’s service offerings.

Taping from this performance, the company’s EBITDA grew from $15.1 million in the prior year to $38.2 million which translates to a 153% growth in cash generated by operations.

“This was achieved on the back of cost containment initiatives comprising of enhanced efficiency and cost discipline,” the Company’s chief executive Lazarus Muchenje said in a statement accompanying the results.

Lazarus Muchenje
Lazarus Muchenje

The company’s overheads margin also registered a significant decrease of 21% to end the year at 48% against 69% for the prior year.

Data subscribers for the period grew by 5% to 1.4 million from 1.3 million in the previous year.

Data contribution to revenue firmed from 26% to 37% indicative of shifting customer needs and preferences.

Mobile money registered subscribers grew by 188% to 2.2 million from 746 000 subscribers the previous year.

“Our mobile money financial services platform, One Money’s market share grew to 2.5% in 2018 witnessing the registration of 1.2 million subscribers,” Muchenje said.

“This was premised on our stable delivery platform offering the best value per transaction, cemented by its ability to connect to all banks via Zimbabwe’s Shared Services Platform ZIPIT,” he added

EquityAxis

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