HomeBusiness DigestEconet leverages on new products

Econet leverages on new products

Zimbabwe’s largest mobile operator, Econet, continues to leverage on broadband and mobile transactions growth to protect its topline against a background of waning voice and SMS revenues owing to the downside presented by over-the-top (OTT) services.

Econet group revenue fell 3% to US$621,75 million in the full year to February 28 from the US$640,99 million in the prior year. Then, its revenue was down from the US$746 recorded in 2015.

The industry recorded a total revenue of $722,9 million, with Econet enjoying a lion share of 76,5% of the total revenue in 2016, while Netone and Telecel had 14,4% and 9,1% respectively.

Econet voice revenues contributed 50,8% to total revenue in the full year ended February 2017 down from 80% in 2010, a 6% decline from prior year, while EcoCash and broadband contributed 12,2% and 19,5% respectively.

On voice traffic market share, Econet commanded 69,9%, while Telecel and NetOne shared the remaining 10,5% and 14,4% respectively.

Zimbabwe is experiencing liquidity challenges, but this has boosted Econet’s mobile money unit, EcoCash, which recorded a 16% increase in customers to 6,7 million from 5,8 million recorded in the previous year, resulting in a 5,48% increase in EcoCash revenue to US$77 million from US$73 million recorded in the prior year.

At industry level, Econet led mobile transactions in the country, garnering a 98,6% market share through its EcoCash platform, while Telecel’s Telecash and NetOne’s Netcash contributed a meagre 1,1% and 0,3% respectively.

Econet’s broadband revenue for the full year to February 2017 increased by 8% to US$123 million from US$113 million recorded in the previous year, following an additional 2,9 million subscribers during the year.

Relative to its peers, in terms of data, Econet had 71% market share, while NetOne and Telecel got 21,3% and 7,7% respectively in 2016. — The Source.

Recent Posts

Stories you will enjoy

Recommended reading