MNOs revenue rises 217% in Q2

This was up from from ZWG910,43 million recorded during the first quarter of 2024, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) said in its new 2024 second quarter report.
NOMINAL revenue by mobile network operators (MNOs) grew by 217% to reach ZWG2,88 billion in the second quarter of the year, as the overall profitability improved, a new report shows.

This was up from from ZWG910,43 million recorded during the first quarter of 2024, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) said in its new 2024 second quarter report.

During the period under review, the MNOs’ revenue proportion necessary to cover operating costs was down to 51,41% from 88,68% recorded in the first quarter of 2024.

“It is worth noting that the first quarter ZWG revenues, operating costs and investment were calculated using an exchange rate of 2 498,7242 which was used to convert all ZWL balances to ZWG in the economy. Aggregate operating costs for MNOs grew by 80% from ZWG807,35 million which was recorded in the first quarter to ZWG1,45 billion which was recorded in the second quarter of 2024,” Potraz said.

It said that total capital expenditure increased by 153% from ZWG65,22 million which was recorded in first quarter of 2024 to ZWG164,77 million recorded during the second quarter of 2024.

“Analysis of cost and revenue trends showed that from first quarter to second quarter 2024, the financial status of operators in terms of profitability improved,” Potraz said.

According to the regulator, the sector recorded 0,64% increase in active mobile subscriptions from 14 739 613 recorded in the first quarter to 14 834 345 in the quarter under review.

Mobile penetration rate increased from 96,14% recorded in the first quarter to 96,76% recorded in the second quarter of 2024.

Potraz said that total number of active data /Internet subscriptions increased by 4,24% in the second quarter to reach 12 042 864 from 11,552,928 recorded in the first quarter of 2024.

“Internet penetration rate increased by 3,19 percentage points to reach 78,55% in the second quarter 2024 from 75,36% recorded in the first quarter. Broadband penetration rate increased by 3,72 percentage points from 72,65% in the first quarter 2024 to 76,37% in the second quarter of 2024,” Potraz said.

“Total mobile voice traffic contracted by 1,27% from 3,08 billion minutes recorded in the first quarter of 2024 to 3,04 billion minutes recorded in the second quarter of 2024. Mobile Internet/data traffic increased by 12,50% from 58,44 Petabytes (PB) recorded in the first quarter to 65,75 PB in the second quarter of 2024.”

Potraz said total voice traffic by the public switched telephone network operators contracted by 5,22% to record 63,95 million minutes from 67,47 million minutes recorded in the first quarter.

“The period saw a contraction in voice traffic coupled with a surge in data and internet usage, indicating a shift from consumption of voice to data-centric services by consumers. Hence, the move by operators continues to shift investment towards high-speed broadband infrastructure,” Potraz said.

“However, the sector may suffer negatively from ongoing power cuts experienced in the country. Incessant power cuts disrupt service quality for telecom operators, who rely heavily on grid-supplied electricity. Despite the challenges, the telecommunication sector is seeing increased competition, with a considerable number of new license applications under the converged licensing regime.”

In the outlook, Potraz said the sector was expected to maintain its momentum with sustained growth and innovation.

The regulator noted that continued investment in infrastructure expansion and technological advancements would further enhance connectivity and digital services for consumers.-ebsinessweekl