Best investment rewards as Econet shareholders receive robust final dividend
Econet Wireless Zimbabwe Limited has announced a substantial final interim dividend of US$ 0.73 cents per share for the year ending February 28, 2025, capping a year of consistent shareholder returns and significant growth.
This latest payout brings the total dividends declared by the telecommunications giant to US$ 1.76 cents per share for the fiscal year.
Econet is currently trading at ZiG 3,53 or US$10,7 cents using a market wide exchange rate of ZiG33 per US$1.
This year, Econet has issued four interim dividends, demonstrating its commitment to delivering value to its investors. The preceding dividends were US$ 0.26 cents per share for the quarter ended May 31, 2024, US$ 0.41 cents per share for the half-year ended August 31, 2024, and US$ 0.36 cents per share for the quarter ended November 30, 2024.
Econet’s trading update for the third quarter to November 2024 revealed a remarkable 69 percent ZWG revenue growth compared to the previous period, driven by a 42 percent increase in mobile network operations (MNO) revenue and the integration of its financial technology (FinTech) businesses. The acquisition of EcoCash’s FinTech operations, which became subsidiaries on March 1, 2024, significantly contributed to this growth.
The MNO sector saw a 20 percent increase in voice usage and a 36 percent surge in data usage, highlighting the growing demand for digital services. The company emphasized its ongoing network modernization efforts, with capital expenditure reaching 18 percent of revenue, to support this increasing demand.
The FinTech division also reported impressive growth. The mobile money business saw a 55 percent increase in active subscribers and a 79 percent rise in wallet funding, reflecting the company’s success in promoting financial inclusion. EcoSure, the life insurance arm, reported a 51 percent increase in transaction volumes, while Moovah, the short-term insurance business, saw a 25% growth in its customer base.
Walter Mandeya, an analyst with Trigrams Investment, commented on the significance of Econet’s consistent dividend payouts. “Econet’s ability to consistently deliver dividends, particularly in the current economic climate, demonstrates its robust financial health and strong business model. It reinforces investor confidence and underscores the company’s commitment to shareholder value. This is a clear signal of a mature company that is creating real value for its investors.”
“The significant final interim dividend of US$ 0.73 cents per share marks a successful year for Econet and its shareholders, reflecting the company’s ability to thrive and deliver value in a dynamic market,” said Mandeya.-ebsinessweekl
