Econet profits plummet by 41%

Econet Wireless reported a 41% drop in profits, dragged down by significant tariff cuts, punitive regulatory measures and a deflationary economic environment in the country. Profit for the year ending February 2015 dropped to $70.4m from $119.2m in the prior period.

According to Fin24, Econet chief executive Douglas Mboweni told an analysts briefing on Thursday that the 35% cut in mobile tariffs and the 5% duty on mobile airtime had negatively affected the viability of the country's telecommunication sector.

Revenue for the period was slightly lower at $746.2m from $752.6m as the group managed to minimise losses in voice revenues by pushing through other services which are of lower margins in nature.