Econet data usage up 31pc in Q1

Econet Wireless said it continues to see an increase in demand for its products as it witnessed an increase in voice and data usage in the first quarter ending May 31, 2023.

Company secretary Charles Banda in a statement said, “The company continues to witness an increase in the demand for its services. Usage of voice and data for the quarter under review grew by 30 percent and 31 percent respectively.”

Econet says this increase in volumes requires further investment into the platforms and systems that drive network capacity and capabilities.

“Our capital expenditure programme which continues to be constrained by lack of availability of foreign currency to pay our suppliers over the next 12 months is expected to be about US$ 135 million. This capital expenditure will require a supportive pricing regime given the inflation trends and currency depreciation,” Banda said.

As for first-quarter financials, in inflation-adjusted terms, there was an increase of revenue of 137 percent compared to the same period last year.

Inflation over the same period has eroded much of the gains made due to a comparable increase in costs and the company noted that exchange losses remain a challenge.

Econet is planning to raise an additional US$30,3m from shareholders as outstanding debentures are due for redemption.

The debentures were issued in March 2017 as part of the US$128 million capital raise to pay external creditors. Debentures are medium- to long-term debt instruments used by large companies to borrow money, at a fixed rate of interest.

“The company has approved a renounceable rights offer to raise US$30,3 million to be applied towards redemption of our maturing debentures. More details on the structure and timing of the capital raise have been provided in our various public announcements,” the company secretary said.-ebusinessweekly