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Nkosinathi Ncube's good job - OneMoney grows 97%

by Staff reporter
10 Oct 2019 at 06:57hrs | Views
NETONE'S mobile money transfer service, OneMoney has grown by 97 percent in the three months ending September 30, 2019, driven by unique offerings including OnePay, a bulk payment facility, an official has said.

The results are a result of Nkosinathi Ncube who was NetOne's Managing Director for the network operators Mobile Financial Services. Ncube surprisingly left NetOne in July and his tenure lasted just over a year but was quite eventful. After the suspension of CEO back in August last year, Ncube was CEO in an acting capacity until the return of Muchenje.

Active subscribers grew from 215 000 to 425 000 in the period under review. NetOne head of public relations Dr Eldrette Shereni told The Herald Finance and Business that OnePay has provided relief to many corporates as it offers "convenient, seamless and instant multi-wallet salary disbursements".

The 2019 second quarter Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) shows that the total number of active mobile subscriptions has grown by 1,8 percent to 12 354 315. The highest growth being attributed to NetOne which grew by 6,1 percent in the quarter.

NetOne's market share grew from 21,4 percent to 22,3 percent after adding over 159 000 new customers.

Under the stewardship of Mr Ncube, the State-owned mobile network operator recorded a US$10 million profit in 2018 for the first time in ages from a loss position of US$77 million in the previous year driven by an increase in revenue and improved efficiency.

Ncube's cost containment measures resulted in a 21% decline in overheards margin.

During the financial year 2018, the company's revenue grew 13% to US$119,2 million.

The year 2018 witnessed the resurgence of NetOne as the leading network of choice in Zimbabwe, with a historic $88 million turnaround from a loss position of $77 million in 2017, to a profit of US$10 million in 2018.

Earnings Before Income Tax Depreciation and Amortisation more than doubled to US$38,2 million from US$15,1 million in the previous year.

Network availability is operating optimally at 99% from 95% prior to April 2018. The improvement in network quality has been a result of refarming of 137 2G sites across the country, thereby availing 3G services to these areas without the need to invest in additional hardware.

NetOne's mobile financial service platform, OneMoney, recorded a 2,5% growth in market share, achieving 1,2 million subscribers.

The company opened 628 franchise shops to complement its existing network of 34 NetOne shops across the country.

According to an industry performance report for the first quarter of 2019 by the Postal and Telecommunications Regulatory Authority, NetOne had 2,6 million subscribers down from 3,2 million in the last quarter of 2018.


Source - Byo24News

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