Chronicle Editor
Business Reporter
LISTED telecommunications firm, Econet Wireless Zimbabwe, says it recorded gains across voice, data and SMS metrics during the six months to August 31, 2020 as demand for the services spiked due to the Covid-19 pandemic.
Management has also attributed the gains to ‘fair pricing’ during the period under review, despite high inflation. The group said voice traffic increased by 7,9 percent for the half year to August 2020 while data consumption went up by 63 percent. SMS traffic was up 41,6 percent.
“In the first half of the current financial year, all volume metrics of the business increased as prices were not adjusted in line with inflation. Therefore, our services were perceived by our customers to be cheaper relative to other price escalations in the economy,” said Econet.
“This resulted in a significant increase in usage during this period. Despite the recent price adjustments to more reasonable tariffs, the company has been able to sustain its volumes at the higher prices. Our products and services have been critical in providing the much-needed connectivity as our customers observed physical distancing protocols required under the prevailing Covid-19 environment.”
Econet expects its business to improve going forward following the easing of lockdown restrictions. The operating margins of the company remain positive at about 40 percent earnings before interest, taxes, depreciation and amortization (EBITDA), it said.
Econet is in one of the few firms that are strategically poised to benefit from the current global health crisis. And going forward, the group said it is looking to jump on any emerging opportunities.
“The ‘new normal’ post the Covid-19 induced lockdown has created new opportunities for the business to leverage agile working technologies and deliver digital solutions for our consumers. Even under challenging operating circumstances, we believe the business will continue to thrive based on our adaptable business model,” said Econet.
Online Reporter