State-owned mobile network operator, NetOne has reported profit after tax of US$14,9 million in the 10 months to October, buoyed by a cost containment strategy instituted by government.
Last year the mobile network operator posted a US$57 million loss in 2017.
The troubled mobile network operator is one of the struggling state enterprises shortlisted for privatisation by government.
Year-to-date the company’s revenue is 20% above target with the highest revenue in the year being recorded in October.
In an interview, NetOne acting chief executive officer Nkosinathi Ncube said the recent figures are a result of cost containment initiatives and adoption of the 100 day programme cycles outlined by government for parent ministries.
The performance demonstrates and articulates the renewed vigour at NetOne from a loss position of US$57 million in 2017.
“NetOne is coming of age and beginning to recoup the benefits of the foundation laid over the past years, as a result of network expansion and growth of our mobile financial division, OneMoney. These factors coupled with stringent adherence to government initiatives outlining corporate performance, have and will continue to increase tide of change at NetOne,” he said.
“There has been a marked performance of NetOne’s products, resulting from the increased footprint, through commissioning of new base stations in marginalised areas throughout Zimbabwe. The NetOne mantra is to provide quality network to enable service provision to every corner of Zimbabwe. The positive results yielded to date are a result of staff commitment to transform and develop communities through communication solutions.”
NetOne’s One Fusion continues to be a popular combination of SMS, voice, data and social media bundles within the market, that is driven by the need for communication in the country. The service has been complemented by OneMoney, a mobile financial service offering alternative payment options and solutions, encouraging financial inclusion of every Zimbabwean regardless of social stature.
According to the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz)’s abridged second quarter report for 2018, NetOne’s active subscribers increased by 10,1%, representing the largest portion amongst the mobile players. The increase can be attributed to the NetOne’s overall net additions of base stations.
The increased network presence, contributed immensely to that 93% leap in mobile money subscriptions by OneMoney, the mobile financial wing.
OneMoney, NetOne’s mobile financial services arm, is integrating to a number of payment solutions in the country and also creating a robust platform that will be a default payments engine for all startups and innovators in Zimbabwe by first quarter in 2019.