Netone Chief Executive Officer, Mr. Lazarus Muchenje is seeing Netone offering world-class services in the next 24 months because already there is a road map showing them the way to go and from the few steps taken the journey is bears fruits.
In an interview with Trevor Ncube, he explained the road map to the people which he named Back to the basics strategy. He gave 4 strategic objectives his management team is focusing on Quality network, Quality distribution, Quality contact center, and Quality balance sheet.
It’s not a secret now that Netone is the best network currently in Zimbabwe as it is offering Quality network services like better network speeds.
NetOne is consistent in improving their network quality in the areas where their clients reside by adding more base stations especially in rural areas irrespective of the economic challenges that are being faced in Zimbabwe as the results testify of it.
As was revealed by Lazarus Muchenje recently Netone recorded a $10.2 million profit, in the NetOne 2019 Integrated Report presented during their 3rd Annual General Meeting held in the capital on Friday.
Netone is growing very fast in the telecoms industry because they have a 25% increase in their subscribers from 2,6 million to 3,3 million within 2018 to 2019 financial year. The large MNO, closed off their financial calendar on a high tangent, after realizing a 13% growth in revenue from $105,5 million recorded in 2017 to $119,1 million in 2018.
Netone has prioritized accessibility of their products and services as they have opened 638 franchises complementing their 34 shops. Electronic and digital distribution was also boosted as they now have 21% revenue from 14%. Their distribution agents increased to 3 000.
Customers are being satisfied by the services that are being offered, Contact centre service is accessible to everyone, assured to be answered in 30 seconds and in 3 minutes your issues to be resolved, if not they will call you back. The aim is to increases the perception of network quality. In the recently published customer satisfaction survey commissioned by POTRAZ, NetOne beat all other rivals on most of the measured metrics.
The Quality balance sheet is another strategy that is being carried and has been showing good results so far. NetOne had been operating with negative working capital as their liabilities were exceeding their assets. 2018 saw NetOne move from year after year losses to achieve a $10 million profit.
This is very significant considering the fact that in the previous year, the company had made a loss of $77 million. They increased their revenue by 13% to $119 million at the same time lowering the overhead proportion from 69% in 2017 to 48%.
The Business also took a leap towards restoring value as evidenced by EBITDA of $38,2 million representing a margin of 32%, which showed a growth of 18% from a margin of 14% in the prior year. The business swung to profitability, registering profit after tax of $10,2 million against prior year performance of a loss of $77,7 million.
The buoyant performance was a result of revenue growth coupled with cost discipline revealed by the drop in overhead costs by 28% from $72,7m in 2017 to $56,8m in 2018.
Achieving world-class status is not an easy thing to achieve, but it stays a nice thing to say because with the crisis the country is facing no one has ever done that in the history of the world. It’s something that can be achieved when you are in a nation that has reached the world-class status.
As inspiring his message and vision is, results are showing that other mobile operators are pushing forward with the vision of achieving world-class status as they are gaining market shares whereas Netone is losing shares.
According to Potraz’s Q1- 2019 report, “Econet and Telecel gained market share by 3.4% and 0.4% respectively. NetOne lost market share by 3.8%”