Econet commits to network modernisation initiatives
Econet Wireless Zimbabwe says it remains committed to completing current network modernisation initiatives, which will transform network performance, expand coverage, and increase capacity to support changing customer demands for data-intensive applications.
In a trading update for the quarter to November 30, 2023, the company said it will leverage new technologies to enhance the potential for better financial performance through improved customer experience and lower costs.
“The company’s strategic focus on fostering solutions centered around the customer, prioritizing security, engaging with regulatory bodies, and investing in infrastructure sets it in a strong position amid the challenges present in the current economic landscape,” reads the statement.
The company said after the successful settlement of debentures in September 2023, the exchange loss exposure was significantly reduced, and this should improve the business performance going forward.
The company successfully closed the renounceable rights offer of new ordinary shares in the capital of the company to raise US$30,3 million, and proceeds from the rights offer were applied to redeem debentures issued by the company, which matured at the end of April 2023.
“Ordinary shares amounting to 401 586 371 were issued and commenced trading on the Zimbabwe Stock Exchange on October 9, 2023,” the company said.
For the quarter under review, revenue increased by 177 percent from $0,8 trillion relative to the same period last year.
The company said growth in voice and data traffic of 28 percent and 26 percent, respectively, was largely anchored on network modernization.
However, for the period under review, exchange losses were 20 percent of revenue against a prior period comparative of 26 percent, and they continue to weigh down the financial performance of the business.
According to a report by POTRAZ, the growth in market share for both voice and data services points to the company’s success in delivering value to its customers.
It said the increased consumption and usage patterns show that ongoing investment in network infrastructure is imperative.
“Econet voice market share increased slightly, and data market share decreased marginally. Other key metrics, such as base station and 4G base station market share, continue to improve,” reads the statement.
Econet added that the continued increase in data traffic reflects changing consumer behavior and evolving usage patterns towards data-intensive applications such as video streaming, social media engagement, and online gaming, which require commensurate capital expenditure to continue to provide quality service.
“This will require a supportive tariff regime given the inflation trends. In order to sustain the quality of services amidst higher usage rates, there’s a need for tariffs that support the business, especially as inflation impacts capital spending,” the group company said.
It indicated that implementing cutting-edge network technology, optimizing spectrum utilization, and increasing network density is necessary to manage growing data traffic and maintain a resilient network.
