Econet Profit Surges 39 Percent

Mergers, Acquisitions and Financial Results

Econet Wireless' half-year profit to August rose 39 percent to US$64,2 million after the group added about a million new subscribers on its network. The group spent US$122 million on its network expansion during the period under review, which saw installation of 401 additional base stations.

The investment also largely contributed to the increase in Zimbabwe's mobile penetration from 40 percent to 52 percent. Total assets rose 21 percent from US$392.7 million to US$475.8 million. The group deferred consideration of dividend to year-end. Earnings per share increase from US$0.24c to US$0.38c. The ZSE-listed mobile phone company said the number of base stations with 3G capability, which has extended beyond Harare to other major towns and cities increased to 250 from 16.

Commenting on the group's performance, Econet chairman Tawanda Nyambirai said: "The key focus of the business remains the investment in infrastructure to improve quality. The fundamental of the business remain sound and the market still presents significant opportunities." The group's subsidiaries include Econet Wireless Private Limited, Mutare Bottling Company, Transaction Payment System and Ecoweb.