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
Contact centres: cog in the machine or customer experience hub?As customer experience becomes the primary competitive advantage in business, the role of the contact centre is changing significantly. But whether it becomes the heart of the business or a component of the bigger machine depends on the business, say African contact centre experts. Read More
Building an African Dream: The Wyzetalk journeyEnterprise social networking company Wyzetalk examines the challenges and opportunities it encountered as a startup in Africa. Read More
African organisations under pressure to sharpen skills retention and employee engagementBusinesses across major African economies such as Kenya and Nigeria are coming under increasing pressure to align their strategies for retaining talent, compensating employees and engaging with their workforces with good international practices. Read More
The Workplace of the FuturePhilip Gregory, Senior Regional Executive: Johnson Controls GWS, Middle East & Africa, talks about the workplace of the future, how it will impact the workforce and how businesses can navigate the tension between employee demands and the needs of the corporation. Read More
New MTN boss Ebenezer Asante starts work at MTN Ridge officeThe former Chief Executive Officer for MTN Rwanda Ebenezer Asante has started work on Friday as the new CEO of Ghana’s leading network operator MTN at its plush Ridge Head quarters in Accra. Read More
Tigo Ghana CEO 2nd on Sweden’s list of 75 young and promising womenThe CEO of Tigo Ghana limited, Roshi Motman, has been named as the second most young, promising and prominent female executive on Sweden’s tall list of 75 outstanding women. Read More
Safaricom non-voice revenue, subscriber numbers show strong growthSafaricom has reported a total revenue increase of 13% to Kshs 163.4bn, with non-voice service revenue increasing by 27% to Kshs 68.8bn. Read More
She Leads Africa launches 2015 Entrepreneur ShowcaseThe premier platform for young female entrepreneurs across Africa has launched this year’s competition, with a $15,000 cash prize for the winners. Read More
Africa highlighted as high potential tech marketAfrica’s trade potential has come under the spotlight at the 5th annual DHL Global Technology Conference in Dubai. Read More
FEATURED STORYThe transformative power of affordable smartphones and unlimited data in Ghana
Smartphones are helping transform their lives of ordinary people in Ghana, Reports Nana Appiah Acquaye.
BEST READ NEWS
IN DEPTHNIMC infrastructure must be managed by credible people: NIMC chief
NIMC’s chief speaks to Kokumo Goodie about the role of the NIMC and his own legacy.