Econet profits plunge 37%

ECONET Wireless Zimbabwe says it recorded a 37.14 percent drop in profit after tax to 14,9 million for the half year ended August 31, 2016 from $23.8 million during the same period last year due to the difficult economic environment.

The group's revenue for the period under review was $301 million, 6.7 percent less when compared to $323 million for the same period in 2015.

In a statement accompanying the group's financials, the telecommunications firm's chairman Dr James Myers said profitability was affected by the decline in revenue as a result of the difficult economic environment.

"Profit after taxation was $14.9 million compared to $23.8 million for the year. Profitability was affected by the decline in revenues as a result of the difficult economic environment.

"We have, therefore, continued to focus on cost reduction in order to protect margins and profitability," said Dr Myers.

The company was recently recognised for being the highest contributor to Value Added Tax for the tax year ended December 31, 2015.