NetOne made a $3 million loss in 2015. Gaining subscribers but losing money

Mergers, Acquisitions and Financial Results

NetOne, the government owned mobile operator, made a loss of about $3 million dollars in the 2015 financial year, the company’s acting Chief Executive Officer Brian Mutandiro has said. Mutandiro provided the information to parliamentarians who toured the company last week. The 2015 loss is a decline from a $5 million annual profit made in 2014.

The 2015 loss was against a total revenue of $120 million which was an increase of about $20 million from the $100million they brought in in 2014.

The acting CEO says the loss is the results of a poor business model that saw them bleeding money in promotions it held during the year. Such promos as the Dollar a Day promo which was drastically adjusted in March to take away most of the free benefits it provided to consumers.
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Source: TechZim 23 May 2016