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Econet Wireless Profits Halved

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Zimbabwe's Econet Wireless has posted a 17 percent drop in revenues of USD323 million for the first half of this year, alongside a 52 percent fall in profits to just USD23 million.

The company has announced a number of cost cutting measures, including a 20 percent cut in salaries for its staff and is said to be seeking 15 percent cuts from suppliers.

The company blamed a week local economy alongside a five percent tax on airtime as well as a one-third cut in how much it charges for voice calls. As part of the cost cuts, capital expenditure was also reduced to 14.1 percent of revenue, from just over 20 percent a year ago.

"Against this very tough economic backdrop, some significant regulatory changes have also impacted our telecommunications business," it said.

Meanwhile, it's mobile money service ended the period with 4.9 million customers.

"With a subscriber base that has grown to 4,9 million and over 21,000 registered agents over a four-year period since its introduction on September 28 2011. EcoCash is now amongst the leading mobile money service providers on the continent."

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Tags: econet wireless