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
MTN Ghana takes Best HR awardMTN has been adjudged the Overall Best Organization in Human Resource (HR) Practice in Ghana for the second time in a row at the recent HR Focus Awards. Read More
Dell EMC acquisition to create ‘mega-tech’ companyDell Inc. has agreed to acquire network storage giant EMC Corp. for approximately $67 billion. Read More
GTBank to empower Nigerian SMEsGuaranty Trust Bank plc has partnered with Agence Française de Développement to launch a N3 Billion initiative to boost financing for business start-ups and development projects in Nigeria. Read More
Beachhead Solutions introduces channel programme for emerging marketsBeachhead's high-ROI reseller programme is now available in MEA and India. Read More
Barclays Africa launches RiseA new global start-up community has been launched to pioneer financial services and unlock Africa’s potential. Read More
JUA Energy enters Nigeria after success in KenyaAfter successfully entering the Kenyan market in April 2014, solar-powered systems and technological electronic accessories manufacturer brand JUA energy has launched in Nigeria to sell through e-tailer Jumia. Read More
Fundamo founder joins Nomanini’s advisory boardFundamo founder Hannes Van Rensburg, generally considered the father of mobile payments, has joined the advisory board of Nomanini, a South African-based, enterprise technology transactions platform provider. Read More
Airtel sponsors Indo-Africa ICT Expo 2015Airtel is sponsoring the Indo-Africa ICT Expo 2015 being held at the Kenyatta International Conference Centre (KICC) now underway in Nairobi. Read More
MTN acquires Smart Village to enhance its foothold in the fibre network spaceMTN has concluded a deal with MultiChoice to acquire Smart Village, which will accelerate the mobile operator’s fibre to the home (FTTH) strategy to be the provider of choice for high speed fibre network across South Africa. Read More
Agilitude opens East African office on the back of mobility and cloud growthSalesforce reseller and Consulting Partner Agilitude has announced that is has opened an office in Kenya, making East Africa its next target for growth. Read More
FEATURED STORYConnectivity critical for Nigeria's ICT sector, says SES chief
Connectivity is vital for any country to fully optimise the huge potential of cyberspace, SES Sales Manager for West Africa Joy Nma Emenike tells Kokumo Goodie.
BEST READ NEWS
IN DEPTHHigh tech homes: Just press play
High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.