Daily News

Econet Wireless Zimbabwe consolidated its position as the country’s leading mobile network operator (MNO) as it was the only operator to record growth in voice calls, while both of its market competitors, Telecel and NetOne, recorded a decline in voice traffic.

According to the latest quarterly report by sector regulator, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) there was an overall 8% growth in national mobile voice traffic to 1.4 billion minutes from 1.3 billion for the third quarter to September 2019.

The statistics by Potraz show that the growth, in approximately 100 million minutes, was enjoyed by Econet. “Econet`s market share has been continuously increasing over the year, starting with a market share of 78.8% in the first quarter, recording 80.1% in the second quarter and 82.3% in the third quarter,” reads the Potraz report. 

“On the other hand NetOne and Telecel`s market shares have been consistently declining,” from 16.3% to 15.4% for NetOne, and from 3.6% to 2.3% for Telecel. 

Econet’s increased voice call usage also means the company, which has the biggest number of active subscribers –  above 8,7 million –  enjoyed the bulk of the revenue that was generated through mobile phone calls.  

Experts say usage is a fundamental key performance indicator in telecoms, reflecting the true performance of a business – as opposed to tariff, which is regulated and may depend on many other factors. Despite its size and serving a mass market, Econet continued to record growth in usage, benefitting largely from its large network coverage and investment in latest technology for efficient operations.

Interestingly, the growth in Econet’s voice traffic comes at a time most businesses in the country are recording volumes decline and at a time the traditional voice call is facing stiff competition from Over The Top (OTT) communication channels such as WhatsApp, Telegram, Sasai, Skype and many others.  This, analysts say, points to the resilience and bankability of Econet’s business model, and bodes well for the long term future of the business. 

The Herald/The Chronicle 

Mobile voice traffic has continued to show resilience in the face of increased competition from messaging platforms and Voice Over Internet Protocol (VoiP) with the latest Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) report showing an 8 percent growth in voice traffic for the quarter ended September 2019.

The growth was, however, largely driven by Econet in a year in which, according to the report, other operators struggled to increase call volumes. A few years ago players in the telecoms sector saw their voice call traffic face significant pressure from the new technologies. Econet Wireless Zimbabwe chief executive officer Douglas Mboweni told an analysts’ briefing in November 2014 that the company would adopt a strategy in which it would focus on growing overlay services, apart from voice, to drive revenue growth and margin improvements in the future.

“We had anticipated the trend away from traditional income streams. We then took a strategic decision to steer the business towards innovations that would become new sources of growth for our business. We are beginning to see the fruits of that strategy,” Mr Mboweni said at the time.

These fruits include the successful growth of mobile financial services, to the extent that Econet spun off Cassava Smartech as a standalone listed company in December 2018, which has gone on to be one of the top three counters on the Zimbabwe Stock Exchange.

But to Econet’s credit, its voice business has remained a fundamental pillar to the company’s revenue streams.  According to the Potraz report, there was an overall 8 percent growth in national mobile voice traffic to 1,4 billion minutes from 1,3 billion for the third quarter to September 2019, with Econet behind this upward trajectory.

“Econet’s market share has been continuously increasing over the year, starting with a market share of 78,8 percent in the first quarter, recording 80,1 percent in the second quarter and 82,3 percent in the third quarter,” according to the Potraz report.

On the other hand, NetOne and Telecel’s market shares have been consistently declining with NetOne’s share declining from 16,3 percent to 15,4 percent between the second quarter and the third quarter while that of Telecel was down from 3,6 percent to 2,3 percent for the same period.

Meanwhile the telecoms industry recorded a 4 percent growth in active mobile subscriptions, from 12,4 million to 12,9 million. This saw the mobile penetration rate increase by 3,4 percentage points from 84,8 percent to 88,2 percent. All the mobile operators recorded growth in active subscriptions.

263 Chat/ All Africa

The latest Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) report shows that Ecocash processed 99.7% of the total value of mobile money transactions in the third quarter of 2019, up from 99.6% recorded in the previous quarter. In the same period, OneMoney’s share of transactions remained flat at 0,3%, while Telecash’s share of transactions slid from 0,1 to 0,03.

From the report, it means that EcoCash accounted for nearly all of the 106,1% growth in cash ins of about Z$5billion (up from Z$2,4billion in the 2nd quarter), and the 99.2% growth in airtime, bill and merchant payments from Z$2,5 billion in Q2, to Z$4,9 billion in the third quarter. It would probably come as no surprise that EcoCash’s transaction volumes and values have continued to rise, given its numerous use cases (of what customers can do using EcoCash) and its extensive agent and merchant network.

From the Potraz report, OneMoney, only gained customers but that did not translate into transaction activity reflected through a static 0.3% share of transaction volumes. The Potraz report said OneMoney – whose customer base of 428 529 is 6,3% that of EcoCash’s base – grow by 93 397 more customers (27.8%), while EcoCash, which posted 6 707 225 customers, grew its base 64 217 more customers (a percentage point). TeleCash lagged behind, reporting total subscriptions of 54 399 customers, an addition of 209 more customers (or 0.4%) growth from the 2nd quarter.

Mobile Money Africa 

The latest Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) report shows that Ecocash processed 99.7% of the total value of mobile money transactions in the third quarter of 2019, up from 99.6% recorded in the previous quarter. In the same period, OneMoney’s share of transactions remained flat at 0,3%, while Telecash’s share of transactions slid from 0,1 to 0,03.

From the report, it means that EcoCash accounted for nearly all of the 106,1% growth in cash ins of about Z$5billion (up from Z$2,4billion in the 2nd quarter), and the 99.2% growth in airtime, bill and merchant payments from Z$2,5 billion in Q2, to Z$4,9 billion in the third quarter. It would probably come as no surprise that EcoCash’s transaction volumes and values have continued to rise, given its numerous use cases (of what customers can do using EcoCash) and its extensive agent and merchant network.

From the Potraz report, OneMoney, only gained customers but that did not translate into transaction activity reflected through a static 0.3% share of transaction volumes. The Potraz report said OneMoney – whose customer base of 428 529 is 6,3% that of EcoCash’s base – grow by 93 397 more customers (27.8%), while EcoCash, which posted 6 707 225 customers, grew its base 64 217 more customers (a percentage point). TeleCash lagged behind, reporting total subscriptions of 54 399 customers, an addition of 209 more customers (or 0.4%) growth from the 2nd quarter.

Daily News

Zimbabwe’s mobile network giant Econet Wireless Zimbabwe posted a set of results that reflects the impact of hyperinflation on entities operating in Zimbabwe. For the half year ended 31 August 2019 revenue increased by 45 % in its inflation adjusted figures to settle at ZW$1.25 billion. However, the company grew its market share, voice and data traffic in the period under review, which demonstrates strong operating strategies, despite the challenging operating environment. 

The company said the inflation adjusted figures have been indexed for comparative purposes by applying, to the prior year historic cost numbers, the inflation indices prevailing at the time. Companies operating in Zimbabwe have now adopted accounting standards for entities that operate in hyperinflationary conditions. 
“Hyperinflation has affected our customers negatively as consumer purchasing power has declined and consequently affected the viability of most businesses in Zimbabwe” the company noted. 

In historical terms, revenue grew by 138% to ZW$ 836.4 million from ZW$ 351.3 million in the prior year. EBITDA margins were at 42% after management implemented “appropriate cost efficiency strategies in light of the deteriorating economic environment”. 

Overall, EBITDA grew by 90% to ZW$522.7 million in inflation adjusted terms and by 223% to ZW$360.8 million in historical terms. This performance was on the back of robust business strategies which saw subscribers grow by 10% to 12.6 million. Customer market share for the six months also grew to 69% from 66%.
The company attributed the company’s strong market position to its “understanding of customer needs and continued provision of telecommunications services at a quality level that is unmatched by the competition” 
“Not only has the company continued to grow its market share, its volume growth in terms of minutes of use and data bytes delivered has remained resilient showing that there is still strong demand in the market for our products and services,” said company chairman Mr James Myers in a statement accompanying the results. 
Econet also consolidated its position in the market with its market share for voice traffic growing to 79%, from 72% prior year comparative. There was also significant growth in data traffic market share to 73% from 69% for the same period last year. The company, however, incurred exchange losses of up to ZW$1.9bln for the six months under review.  

“The group’s results for the period under review were significantly weighed down by the accelerated depreciation of the local currency,” Econet said.  

“As a result of outstanding foreign currency obligations, the group recorded foreign exchange losses of Z$1.9bln.” 

The company said the resultant exchange losses have negatively impacted the performance of the company which had resulted in its first loss since 2010.  The company and other operators continue to implore the government to consider the impact of these “debilitating challenges on the viability of the sector”.  

Daily News

Zimbabwe’s mobile network giant Econet Wireless Zimbabwe posted a set of results that reflects the impact of hyperinflation on entities operating in Zimbabwe. For the half year ended 31 August 2019 revenue increased by 45 % in its inflation adjusted figures to settle at ZW$1.25 billion. However, the company grew its market share, voice and data traffic in the period under review, which demonstrates strong operating strategies, despite the challenging operating environment. 

The company said the inflation adjusted figures have been indexed for comparative purposes by applying, to the prior year historic cost numbers, the inflation indices prevailing at the time. Companies operating in Zimbabwe have now adopted accounting standards for entities that operate in hyperinflationary conditions. 
“Hyperinflation has affected our customers negatively as consumer purchasing power has declined and consequently affected the viability of most businesses in Zimbabwe” the company noted. 

In historical terms, revenue grew by 138% to ZW$ 836.4 million from ZW$ 351.3 million in the prior year. EBITDA margins were at 42% after management implemented “appropriate cost efficiency strategies in light of the deteriorating economic environment”. 

Overall, EBITDA grew by 90% to ZW$522.7 million in inflation adjusted terms and by 223% to ZW$360.8 million in historical terms. This performance was on the back of robust business strategies which saw subscribers grow by 10% to 12.6 million. Customer market share for the six months also grew to 69% from 66%.
The company attributed the company’s strong market position to its “understanding of customer needs and continued provision of telecommunications services at a quality level that is unmatched by the competition” 
“Not only has the company continued to grow its market share, its volume growth in terms of minutes of use and data bytes delivered has remained resilient showing that there is still strong demand in the market for our products and services,” said company chairman Mr James Myers in a statement accompanying the results. 
Econet also consolidated its position in the market with its market share for voice traffic growing to 79%, from 72% prior year comparative. There was also significant growth in data traffic market share to 73% from 69% for the same period last year. The company, however, incurred exchange losses of up to ZW$1.9bln for the six months under review.  

“The group’s results for the period under review were significantly weighed down by the accelerated depreciation of the local currency,” Econet said.  

“As a result of outstanding foreign currency obligations, the group recorded foreign exchange losses of Z$1.9bln.” 

The company said the resultant exchange losses have negatively impacted the performance of the company which had resulted in its first loss since 2010.  The company and other operators continue to implore the government to consider the impact of these “debilitating challenges on the viability of the sector”.