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
Networks Unlimited opens head office for Africa in MauritiusNetworks Unlimited has opened a head office servicing its African business in Mauritius. Read More
Orange completes Tigo acquisition in DRCLess than three months after signing an agreement with Millicom, Orange has completed the acquisition of 100% of the mobile operator Tigo in the Democratic Republic of the Congo (DRC). Read More
New cloud platform offers SMEs greater convenienceMTN Business has unveiled a new cloud delivery platform in Rwanda and Cameroon, which will enable SMEs to access cloud services with greater ease. Read More
Travelport appoints new regional manager for East African headquartersNita Nagi, formerly of Kenya Airways, has been named as the new lead for Kenya, Uganda, Rwanda and Burundi. Read More
Orange completes the acquisition of the Liberian mobile operator CellcomLiberia will now become the 20th country in Africa and the Middle East to join the Orange group with the acquisition by Orange of Cellcom, Liberia’s leading mobile operator. Read More
Orange invests in African e-commerce leader Africa Internet GroupOrange has announced the acquisition of a 75 million-euro equity interest in Africa Internet Group. Read More
HR departments need to keep pace with technology’s accelerating speedThe world of human resources (HR) is changing at a speed that is leaving most HR departments behind. New technology is bringing more transparency into the job market and into the performance of the HR department, creating new challenges for HR directors. Read More
Survey provides glimpse into the world of young entrepreneurs in AfricaThe Anzisha Prize, the premier award for Africa’s best young entrepreneurs, published the Anzisha Youth Entrepreneurship Survey 2016 this month, which provides a snapshot of the realities facing young entrepreneurs in Africa. Read More
Vodacom Business Nigeria appoints indigenous CEOVodacom Business, Nigeria’s leading total telecommunications provider has completely Nigerianised its operation with the appointment of Mr. Lanre Kolade as its Managing Director. Read More
FEATURED STORYNigeria satellite resources to boost economic growth
The Management of NigComSat says Nigeria’s satellite resources are primed to help the nation in accelerating robust ICT infrastructure to boost economic development for the country.
BEST READ NEWS
IN DEPTHIBM Opens First Cloud Data Centre in South Africa
IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.
COMPANY NEWSRSA research reveals blind spots in threat detection
RSA, The Security Division of EMC, has released the results of a new Threat Detection Effectiveness Survey.Networks Unlimited event highlights SimpliVity's new Omnistack Software
Leading data protection focused distributor invites hyperconverged vendor to discuss disaster recovery and data protection.MTN and Ericsson lead the way with first LTE-U network
To future proof its business, MTN SA, together with Ericsson, has successfully trialled LTE-Unlicensed (LTE-U) at MTN’s flagship channel store in Morningside, Johannesburg.