ECONET Wireless Zimbabwe Limited, the country’s largest telecommunications provider by subscriber base, released its half-year financial results for the period ended August 31, 2025, reflecting solid operational momentum and continued investment in network expansion.
The group reported strong revenue growth, improved profitability and accelerated infrastructure development, supported by rising data consumption and increased activity across its mobile financial services and insurtech portfolios.
Applying a six-month average interbank exchange rate of ZiG26,84 per US dollar for income-statement conversions, Econet generated US$502 million in inflation-adjusted revenue, representing a 38% year-on-year increase.
This outcome was primarily driven by significant volume growth, with data traffic doubling and voice traffic up 34% compared to the same period last year.
Top-line performance
Mobile network operations (MNO) remain the group’s dominant revenue driver, accounting for 82% of total revenue, while EcoCash contributed 14% and insurtech 4%.
Data and internet services are now Econet’s single largest revenue stream, generating approximately US$212 million.
The doubling of data traffic reflects heightened digital adoption, supported by Econet’s ongoing modernisation of network infrastructure.
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During the period, the group deployed 100 new 5G sites, introduced 26 lightweight rural-coverage base stations and commissioned 27 additional 2G/3G/4G sites to improve overall capacity and service quality.
Expansion
EcoCash sustained its recovery trajectory, with transaction volumes rising 35% year-on-year. This reflects the impact of regulatory measures implemented since August 2024 to widen mobile money accessibility.
The insurtech portfolio also expanded materially, with Ecolife registering a 50% increase in individual life policies, while Moovah and Maisha Health saw policyholder and membership growth of 31% and 63%, respectively
The fintech and insurtech businesses continue to provide diversification benefits, but MNO still overwhelmingly anchors the group earnings. Given the strong adoption trends in mobile money and digital insurance, the group may gradually increase the contribution of these segments; however, a full pivot away from core telecommunications appears unlikely in the near term.
Currency considerations
Management acknowledged that internal indicators increasingly point toward the US dollar as the group’s functional currency. Nonetheless, Econet continues reporting in Zimbabwe Gold (ZiG), primarily due to regulatory requirements mandating that tariffs be set in local currency, and that listed companies present results in ZiG.
This disconnect — USD-leaning operations but ZiG reporting — creates tension in financial interpretation, particularly in inflation-adjusted numbers. The rising USD share of transactions within the sector may intensify future calls for a functional currency reassessment.
Profitability, perfomance
Econet recorded a profit of circa US$108 million. Earnings benefited from reduced exchange-rate volatility compared to prior periods, lower monetary adjustments and operational efficiencies.
The EBITDA margin remained strong at above 45%, underpinned by cost optimisation initiatives and improved traffic volumes.
Operating cash flows amounted to approximately US$128 million after tax payments, reflecting solid cash generation capability despite elevated investment requirements.
Balance sheet strength
Using the interbank exchange rate (as at August 31, 2025) of ZiG26,7548, Econet closed the period with total assets of US$905,5 million.
Property, plant and equipment accounted for the largest portion, at US$420,5 million.
Capital expenditure amounted to an equivalent of US$53 million, representing a 12% capital-investment-to-revenue ratio.
Investments were predominantly directed toward network expansion, including accelerated 5G rollout, and ongoing IT transformation projects such as the billing-platform migration and the AI-driven Yamurai WhatsApp service, which is expected to reduce call-centre volumes by up to 30%.
This level of capital commitment underscores confidence in the group’s long-term growth prospects and its ability to sustain service quality in a competitive and highly digitalising market.
Market position
Econet strengthened its position in the telecommunications sector during the period.
According to the Postal and Telecommunications Regulatory Authority of Zimbabwe Q2 2025 data, the company’s subscriber market share increased to 73,23%, up from 71,9% in Q4 2024, while NetOne marginally declined and Telecel continued to hold a small share.
In the MNO data-traffic category, Econet commands 82,21% of internet/data market share, compared with NetOne at 17,63% and Telecel at 0,16%.
The company also leads voice traffic with an 87,61% share.
Meanwhile, very small aperture terminal subscriptions, which include Starlink, represent only 0,31% of active internet subscriptions in Q2 2025, compared with 97,42% for mobile internet.
This highlights the continued dominance of mobile connectivity and suggests that Starlink’s impact remains concentrated in fixed-location or underserved segments rather than the mass market.
Market capitalisation
Econet’s market weight increased to 23,1% of the Zimbabwe Stock Exchange total market capitalisation (November 21, 2025), up from 18% as at June 6, 2025.
As of November 20, the company’s market cap stands at approximately US$497 million using the parallel rate of ZiG32, or US$602 million using the interbank rate.
Conclusion
While regulatory currency requirements continue to complicate reporting clarity, the group’s operational fundamentals remain robust.
With market-share gains across subscribers, data and voice traffic and continued expansion of its fintech and insurtech ecosystems, Econet appears well-positioned to maintain sector leadership and support long-term digital transformation in Zimbabwe.
- Taimo is an investment analyst with a talent for writing about equities and addressing topical issues in local capital markets. He holds a First Class Degree in Finance and Banking from the University of Zimbabwe. He is an active member of the Investment Professsionals of Zimbabwe community, pursuing the Chartered Financial Analyst charter designation.
- or [email protected], X: TWDuma_
