INTRODUCTION
Our robust business model, which is built on the pillars of Telecommunications, Media and Technology (“TMT”), is driven by our innovative and pioneering spirit. Despite a challenging economic and operating environment, our innovation, effective market segmentation and solid infrastructure, have enabled us to maintain a leading position in the market. The strong focus on revenue diversification, stringent cost management as well as developing a corporate culture of disciplined execution and accountability has helped us to limit both a revenue and margin decline, while continuing to maintain our customer centric focus…
OPERATING REVIEW
The mobile network operations business segment that largely comprises data and voice revenues contributes about 60% of our business revenues. Whilst voice revenues in the industry have continued to decline as consumers switch to data applications for communication, our position in the market remains strong. All operators are faced with the challenge of migrating from being voice driven businesses to data and content provision. This is happening against the backdrop of difficult economic conditions making it harder to generate sufficient capital from the current revenue streams to invest in new businesses of the future…
FINANCIAL REVIEW
Revenue for the year under review declined by 3.0% to US$621.7 million. The telecommunications industry has continued to experience a decline in revenues resulting from a deterioration of the economic environment. EBITDA declined to US$224.0 million, from US$238.4 million, a decline of 6.0%. However, even under these challenging conditions, at 36.0%, the EBITDA margin remains competitive. We have been creative to recalibrate the business, cognisant of the challenges faced globally by operators in sustaining a growth in voice revenues…
CORPORATE SOCIAL INVESTMENT
As part of our continuing commitment to the people of Zimbabwe, we have provided assistance to over 250,000 orphaned and vulnerable children across the country. The business continues to provide support to talented children in various educational institutions.
BOARD APPOINTMENTS
I am pleased to announce the appointments of Messrs. Hardy Pemhiwa and Michael Bennett to the Board as nonexecutive directors. They bring a wealth of experience and knowledge to our business which will be invaluable to the Board.
OUTLOOK
With the successful completion of the rights offer, and subsequent payment of the foreign debt, the Company is now in a stronger position to deal with the challenges of operating in an increasingly difficult economic environment. Our robust business model, which is anchored on responding proactively to the changing economic and technological environment, remains an anchor on which we will continue to develop our strategies for the future. The technical infrastructure of the Company is a key strength on which we will leverage for our future growth. Our pioneering spirit means that we will continue to explore new ways to use technology to solve relevant problems that society is confronted with. We believe this is one of the hallmarks of our success…
DIVIDEND DECLARATION
The Company declared a dividend of 0.467 US cents per share amounting to US$12.1 million for the year ended 28 February 2017.
Payment of the dividend will be made on or about 22 June 2017. Withholding tax will be deducted at a rate of 10%, where applicable. Payments to foreign shareholders will be subject to exchange control approval and payment guidelines for foreign remittances. Foreign shareholders should appoint or make their own arrangements with a local bank of their choice to receive their dividend on their behalf and to facilitate remittance to them.
The dividend is payable to members registered in the share register of Econet Wireless Zimbabwe Limited at the close of business on 16 June 2017. Shares will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of 13 June 2017 and ex-dividend from 14 June 2017.
SHARE CANCELLATION
The Company cancelled 216,344,376 shares subsequent to year end. The share capital in issue, post the rights offer, and the cancellation of treasury shares is now 2,590,576,832 shares.
APPRECIATION
I would like to take this opportunity to thank all our customers, shareholders, regulators, staff and strategic partners for the support given to the Board and I during the past financial year.
DR. J. MYERS
CHAIRMAN OF THE BOARD
Related download
ECO.zw | 2017 Annual report