Econet reports growth for mobile network, mobile money and even insurance businesses in Q3

Econet Wireless Zimbabwe released a trading update for the Setember to November 2024 period and it shows steady growth across all business units.

Voice and data usage increased by 20% and 36% respectively in the quarter compared to the same quarter in 2023. That’s impressive and actually means more than a growth in revenue because the currency situation could lead to increased revenue not supported by an increase in actual usage.

EcoCash also saw impressive growth. The mobile money business saw a 55% increase in active subscribers and a 79% increase in wallet funding. We could prod to see what exactly is considered an active subscriber but it remains impressive, especially now that there is serious competition in the space.

They say it wasn’t just a growth in subscribers, the subscribers transacted more. Econet reports that there was growth in mobile money volumes and transactions.

Even the other Econet subsidiaries we often forget about also registered growth in the quarter. EcoSure recorded a 51% growth in transaction volumes compared to the same period in 2023. Moovah is reported to have had a 25% increase in motor and non-motor insurance customers.

Revenues

All the above translated to a 69% ZWG growth in group revenues. Mobile network operations saw a 43% increase in revenues which contributed a lot to the group’s fortunes. However, the 69% growth stat was also majorly impacted by the reintroduction of EcoCash revenues to the pot.

In 2023, EcoCash revenues were not added to Econet’s and so even if the mobile network operations had dropped in revenues, the 2024 Econet group likely would have registered revenue increases by simply adding EcoCash’s.

Again, it’s hard to really make much of dollar amounts and so revenue figures by extension in this Zimbabwean economy. In 2023, we were using the ZWL and it was the depreciated ZWG in 2024. Conversions had to be made and I can guarantee that whatever conversion rates were used, plenty of people would have a problem with it.

Econet thus cautions those perusing these statements on the usefulness of the converted ZWL amounts considering distortions that arise when reporting in a hyperinflationary economy.

Mobile network operations

That said, I’m most impressed by the mobile network operations performance. Growth in both voice and data usage translated to a 42% increase in revenues.

Econet invested in its network and is reaping the rewards.

The Group upgraded its core network. This upgrade improved key systems like billing and charging and added advanced digital and AI features.

The new network supports services like high-quality voice calls over 4G (VoLTE) and Smart4Home, a wireless product for heavy data users. I remember marvelling at why there wasn’t VoLTE on Econet’s network but am glad to see it go live. We will have to test it out.

They also upgraded 16 new base stations, 33 radio sites, and 270 microwave links, improving service quality and speed. Additionally, 20 new 5G sites were set up nationwide.