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Econet Wireless stung by more FOREX losses

by Mzingaye Nxumalo
19 Dec 2022 at 21:12hrs | Views
Econet, Zimbabwe's largest telecommunications company, has reported heavy foreign exchange losses throughout the year.

In its latest half-year report for the period ended August 31, 2022, Econet reported foreign exchange losses of $43,7 billion, representing 39% of revenue for the 2021 comparative period.

Econet chairperson James Myres in a report said, "As a result of the exchange rate movements over the last six months, the business recorded foreign exchange losses of $43,7 billion representing 39% of revenue against a prior year comparative of 2% virtually eroding any possibility of achieving an accounting profit."

At the beginning of the year, Econet's market capitalisation on the main Zimbabwe Stock Exchange bourse was US$2,05 billion but had fallen to US$290,92 million last Friday. This was caused by the Zimbabwe dollar depreciating to $672,70, against the greenback, from $108,66 at the beginning of the year.

Financial services firm, IH Securities projects that Econet Wireless Zimbabwe (EWZ) will post more foreign exchange losses in the coming year owing to local currency volatility.

Source - Byo24News