Econet interim results: US $78 million in after tax profits

We just came from an analysts briefing in Harare where Econet Wireless Zimbabwe presented their interim results ending 31 August 2012. We live tweeted the briefing on our @Techzim stream. The one thing clear strategically at the briefing was the role of EcoCash in the new Econet. In fact, the CEO Douglas Mboweni, even said that it’s difficult now to separate mobile telephony and mobile transacting and confirmed “EcoCash is the most exciting product right now”. Just how exciting? The company disclosed today that about US$ 70 million goes through EcoCash every month.

Now on to the financials we were all there for today, Econet in the half year made $78 million after tax profit on revenue of $339 million. That profit is up from about 74 million in 2011 where revenue was 291 million.

Here are the other points from the presentation.

• Econet now accounts for 72% of the mobile traffic share in Zimbabwe. The company now has 7 million mobile subscribers.
• Mboweni says they bought a stake in TN Bank primarily to drive EcoCash adoption. EcoCash now has 1.7 million registered users.
• Econet now has 2.54 million mobile broadband subscribers. Compared to the same period last year, mobile broadband data volume has doubled.
• Some of EcoCash’s strategic future plans include EcoCash card based solutions, an EcoCash savings plan for low income subscribers, micro-lending services
• Econet’s Average Revenue Per User (ARPU) reduced from $10.7 to $8.9. Roy Chimanikire, Econet Deputy Finance Director says it’s a consequence services now accessible to low income subscribers as Zimbabwe’s mobile penetration rate reaches saturation.
• Basic Earnings Per Share is up from $0.44 to $0.46
• Revenue from data services has grown from 14 million last year to 21 million this year. A 50% increase.
• Econet’s operating costs are up from $160 million last year to 186 million this year. Chimanikire its caused mainly by an unusually high number of power failures.
• Econet has invested a total US $1 billion since its founding with $700m invested in the past 3 years.
• Over 70,000 children have benefited from Econet’s non-profit arm, Capernaum Trust
• 771 scholarships have been offered as part of Econet’s Joshua Nkomo scholarship fund

You can find the above and more in the full presentation which you can download here.