Econet may ‘wean off’ Ecocash
BUSINESS| Oct. 26, 2012, 3:58 p.m.
By Alfonce Mbizwo, Harare, Zimbabwe
Zimbabwe’s largest mobile phone operator Econet Wireless says it may wean off its successful mobile money transfer service, Ecocash, as it seeks to boost its growth.
Chief executive Douglas Mboweni told an analysts' briefing that that the company will pursue various models on Ecocash, one of which may be weaning it off for it to become a separate business unit – depending on the size of volumes.
Ecocash has 1.7 million subscribers and 1 600 agents and has, since inception, transacted USD300 million worth of transfers. Ecocash was now handling average monthly transactions of USD70 million, Mboweni said.
The company reported a 4.5% rise in half-year earnings, mainly driven by subscriber growth. Subscriber numbers grew 9% to 7 million in the year, driving revenue up to USD340 million from USD291 million previously.
Econet's basic earnings per share rose to USD0.46 during the six month period to August, compared to $0.44 the previous year.
“Since dollarisation the company has given USD74 million in dividends, USD100 million in share buybacks, USD1billion in investment and USD500 million in taxes”.
Further, he said, coming from a period of severe disinvestment pre-2009, the company had to concentrate on building up capital for the generation of cash flow for long-term investors.
“Econet is working on increasing dividend cover ratio,” Mboweni added.
Airtime sales contributed 66% of revenue, down 1% and 10% towards revenue growth while interconnect and roaming fees and Data, SMS and internet services stagnantly contributed 16% and 13% respectively.
Other services sales showed a marginal growth up 1% to 5% on last year. Data revenue picked up 50% to USD21 million on last corresponding half year mainly from corporate subscribers and swelling Smartphone usage.
Econet has over 70% of the Zimbabwe mobile phone market.
MORE BUSINESS NEWS
DHL to invest millions of Euros across SSA in 2015DHL plans to invest millions in upgrading its shipment handling systems and facilities in SSA this year. Read More
Ebenezer Asante to assume CEO role of MTN GhanaEbenezer Twum Asante will officially assume the position of Chief Executive Officer for MTN Ghana, effective 1st July, 2015. Read More
Nomanini scales West African footprint with Transaction Solutions partnershipSouth African-based portable Point of Sale (PoS) service provider Nomanini has signed an exclusive agreement with Transactions Solutions Ghana Limited to substantially scale numbers of its cloud-based PoS terminals in Ghana. Read More
Online procurement system for East Africa goes liveKenyan IT start-up M-Tenders Systems has created East Africa’s first live online procurement system, www.m-tenders.com. Read More
Customer experience starts with staff experienceCompanies seeking to improve customer experience to boost business may be overlooking a critical component in the mix: staff, says new Interactive Intelligence research. Read More
MasterCard, Ecobank Group to accelerate e-payment in SSAEcobank, Africa’s largest bank by geographical reach, will roll out MasterCard payment solutions to millions of its customers in Africa. Read More
Travellers more tech savvy78% of global travellers are using digital information while planning their trips; 66% resorting to digital sources for travel tips at the destination, says Visa. Read More
Standard Chartered appoints Chief Innovation OfficerStandard Chartered Bank says it has appointed Ms Anju Patwardhan as the Bank’s first Group Chief Innovation Officer, effective 1 July 2015. Read More
Cameroon: a well-kept investment secretThe investment opportunities in Cameroon are wide open, believes Africa strategy advisor for Moore Stephens, Jeff Blackbeard, who recently met with Cameroonian Prime Minister Philémon Yang. Read More
FEATURED STORYIHS plans to inject fresh $500m to grow capacity
Mohammed Darwish, managing director of IHS Towers, says the firm will soon inject another $500million into the business after raising some $2.5billion to finance expansion drives. Darwish spoke with biztecafrica.com in Lagos.
BEST READ NEWS
IN DEPTHAs curtain falls on MDGs, what next?
Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.