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TelOne bounced to a $480 000 net profit for the year ended June this year from a $7,8 million loss the previous year as the state owned fixed network company charts a new path under the stewardship of former Rainbow Tourism Group chief executive, Mrs Chipo Mtasa. Appointed TelOne managing director in 2013, Mrs Mtasa is leading a revolution that has seen the company re-branding and expanding its range of services and products. While revenue slumped from $76 million to $69 million as users cut back on expenditure due to a tight economic environment, the firm posted an operating profit of $1,6 million.
“TelOne has moved to operating profitability since 2013. For the 2015 year to date performance, the company has registered an operating profit despite the revenue decline,” said company board chairman Mr Charles Shamu in financials published in the media, a rare fit by a state enterprise.
Financial performance of most Government owned or linked institutions remain shrouded in secrecy although Finance Minister Patrick Chinamasa is on record saying that most of them were a drag on the fiscus, requiring constant financial support and bailouts. Mr Shamu said the parastatal was implementing cost containment measures and improving efficiencies to address overheads which were a drag for most Government linked firms.
In the reporting period, administration expenses slightly went down to $32,6 million from $33,3 million last year. Mr Shamu said TelOne had, during the year, launched the fibre to the home broadband service as well as the public Wi-Fi project and would continue to explore initiatives to boost its performance.
TelOne also has over 329 000 subscribers for its key fixed line network, a number that has dropped from a peak of 340 000 mid last year according to industry regulator, the Postal and Telecommunications Regulatory Authority of Zimbabwe.
Mr Shamu, however bemoaned the legacy debt which continues to impact on TelOne’s balance sheet and ability to attract fresh capital injections. Born out of the disbandment of the then Post and Telecommunications Corporation, TelOne inherited a historical debt of over $300 million. “Government debt warehousing is an option that Tel One is pursuing, which will create opportunities for the company to access fresh capital at reasonable rates by presenting an attractive balance sheet to financial markets,” Mr Shamu said.
Mr Shamu said the company was implementing “special strategies” to pursue money, estimated at over $150 million that customers owed it in unpaid bills. — New Ziana
Online Reporter