Econet has paid $1.1 billion to Zimbabwe government

ZIMBABWE's largest mobile network operator, Econet Wireless, says it has paid over $1.1 billion to fiscal revenues in various taxes and levies to Government, a contribution equivalent to 8% of the country's 2014 GDP.

Econet said that this contribution and that from other operators in the sector reflects the importance of the telecoms industry to the recovery and growth of the domestic economy.

"Through supportive policies, the sector has immense potential to continue to contribute to national development and complement Government efforts in economic development," the company said.

"In our continued efforts to demonstrate our commitment to Zimbabwe's economic development and contribution to wealth-creation for all, the business continues to approach policy makers for dialogue on interventions that are required to protect and enhance the sector's and Company's contribution to the broader economy. All other things being equal, the sector's capacity to boost economic growth exists," added Econet.

The performance of the period under review shows a 17.7% decline in revenue to $323 million. Overlay services revenue, however, grew by 29.1%. Earnings Before Interest, Taxation, Depreciation and Amortisation (Ebitda) decreased from $155.0 million to $122.5 million, a decrease of 21%. The Ebitda margin declined by 1.6% to close at 37.9%.

The Group has continued making debt repayments, and to accumulate profits from trading, as a result of which its debt to equity ratio has improved from 35.1 % to 33.2%.

Of note is Steward Bank's turnaround from a negative Ebitda of $ 3.9 million in the prior year to the current positive Ebitda of $3.2 million. Its profit after taxation for the period amounted to $1.9 million compared to a loss after taxation of $3.7 million for the prior period. This turnaround in the bank's performance is mainly as a result of maximising synergies as well as the cost reduction initiatives.