Decline in finance costs propels Econet H1 earnings to $48,9mln

Decline in finance costs propels Econet H1 earnings to $48,9mln

HARARE,October 31 (The Source)- Econet Wireless reported a threefold increase in after tax profit to $48,9 million in the six months to August from $14,97 million recorded in the same period last year on increased revenue coupled with a marked decline in finance cost.

In April the company undertook a $130 million rights offer to pay a consortium of creditors — China Development Bank, African Export Import Bank, Ericsson and South Africa’s Industrial Development Corporation — just over $128 million.



In a statement accompanying financial results on Tuesday chairman James Myers said repayment of the debt had reduced finance costs by $10,7 million.

Revenue increased by 17 percent from $ 301,5 million to $352,7million recorded in the previous year driven by non-voice services. Non-voice revenue contributed 63 percent to the company’s total revenues.

Data revenue increased to $63,4million from $58,2 million recorded in the same period last year while revenues from the mobile money service, Ecocash, jumped from $39,2 million to $57,1 million.

The group’s banking subsidiary, Steward, reported an increase from $14,4 million to $28,4 million.

Earning before interest tax depreciation and amortisation (EBITDA) increased to $139,105 from $105,854 recorded in the previous year.

Total assets increased by 18 percent to $1,44 million from $1,22 million recorded in the previous year.

The board declared a dividend of 0,965 cents per share.