Econet reports big jump in data usage, surge in mobile money customer growth

ECONET Wireless Zimbabwe has reported significant growth in both data and voice usage, with increases of 74 percent and 46 percent respectively for the first quarter ending May 31, 2024, compared to the same period last year.

In its latest trading update, the technology and telecommunications firm said data and voice revenue now contributed 42 percent and 38 percent of the company’s total revenue respectively, a shift from 33 percent and 45 percent respectively in the first quarter of 2023.

“The marked growth in data usage underscores the need for sustained network expansion and upgrades to adequately meet the ever-increasing demand for mobile broadband and digital services,” the company stated.

“With the advent of 5G, IoT, and other cutting-edge technologies, the need for robust, agile, and future-proof network infrastructure has become more pressing than ever.”

During the quarter, Econet commissioned over 30 new sites across the country, enhancing network performance and quality of service. The company said it plans to continue its network modernization programme, extending coverage in urban, peri-urban, and rural areas.

“Increasing our 5G penetration is also a key initiative, with plans to commission additional 5G sites by the end of the financial year,” said the company.

To address the growing utilization of data services, Econet has added functionalities to its core network, transitioning to a cloud-based system that promises better service personalization to meet diverse customer needs.

However, it said it has faced significant challenges due to ongoing power cuts, leading to increased costs for backup power and investment in solar energy.

“Load shedding on the national power grid continues to negatively affect the business through reliance on costly backup power to maintain the requisite network uptime and meet quality of service standards.

“The business continues to invest in renewable energy sources like solar power,” it said.

Following the acquisition of FinTech businesses from EcoCash Holdings, Econet’s mobile money unit delivered a strong performance, driven by a growing active customer base and increased usage of its digital financial services.

The mobile money business saw active customers grow of 189 percent, compared to the first quarter of the prior year, with international remittance values increasing by 265 percent.

EcoCash has also continued its partnerships with Mobile Transfer Agencies from various source markets to terminate into the EcoCash wallet, leveraging its distribution network for customers to access funds. This is expected to drive further growth in remittance values in the coming period.

The synergies between Econet’s digital insurance platforms and mobile money ecosystem have led to increased adoption and cross-selling opportunities.

The life insurance business recorded a 14.2 percent growth in premiums against the last quarter, while Airtime Cover subscriptions under EcoSure exceeded 400,000 by the end of the quarter. Maisha Health Fund saw a 5.5 percent growth in gross premiums compared to the prior period.

Moovah, Econet’s short-term insurance business, recently introduced mobile phone insurance, reinforcing its position as a pioneering leader in the market and reaffirming its commitment to innovation and responsiveness to customer needs.

“We remain dedicated to expanding our offerings and focusing on customer insights to provide comprehensive and tailored insurance solutions, enabled by the Group’s capacity to develop agile products,” said the company.

In the quarter ended May 31, 2024, Econet declared and paid an interim dividend of 0.26 US cents per share.chronicle