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State-owned mobile phone provider, NetOne must improve its financial performance so that it can declare dividends to its shareholder, a Cabinet minister said on Wednesday. The mobile operator posted a net loss of $5,8 million in the first half of 2015, down from an $8,5 million profit during the comparable period in 2014. While its revenue surged 14 percent to $57,8 million, the firm said profitability was weighed down by investments in expansion projects. ICT, Postal and Courier Services Minister Supa Mandiwanzira told a NetOne annual general meeting that the board and management of the company should work harder to improve profitability.
“I was given a mandate to ensure that State enterprises under the Ministry of ICT, Postal and Courier Services are performing and the only way we can measure performance is when you declare a dividend to Government,” the minister said. “So we are expecting that you declare a dividend to Government. But do not give us a dividend when it is not there.”
Minister Mandiwanzira added: “Perform, make profit and deliver the dividend.” He urged NetOne to emulate its sister parastatal, fixed line telephone operator, TelOne in terms of business practices and profitability.
TelOne has turned around its operations under the stewardship of its new chief executive Chipo Mtasa, having posted a net profit of $480 000 for the full year ended June 2015.
The telecommunication company had recorded consecutive losses since 2013. “TelOne is ahead of you in terms of their act. They held an annual general meeting (AGM) a few days ago. They are now doing things transparently, professionally with accounts presented to the public and stakeholders.
“So we want to see you not lagging behind but being at the same level as TelOne or probably even do better,” he said. NetOne is Zimbabwe’s second largest mobile firm with an active subscriber base of 3,1 million. — New Ziana.
Online Reporter