NetOne’s Fortunes Change Under Muchenje…Posts $1, 2 Million Profit in May

Zimbabwe’s second largest mobile network operator NetOne posted a profit of US$1, 2 million in May owing to several strategies implemented under the helm of its new chief executive officer Mr Lazarus Muchenje.

Some of them include massive marketing of their One Money product which now has a subscriber base of 1, 3 million since launch. NetOne has been dogged by perennial losses, therefore the achievement of a profit in the month of May, just sixty days after Muchenje’s arrival signifies a positive turnaround in the fortunes of the company.

By Kudakwashe Pembere

During an annual general meeting held on Friday, Mr Muchenje expressed satisfaction on the results that the company has managed to achieve under his leadership since he took over the reins at the company on 1 April 2018.

Mr Muchenje has a big task ahead of him of repositioning NetOne which has been lagging behind on both revenues and market share and is determined to transform it into a world class entity. He also noted that the company’s Mobile Financial Services product, OneMoney, has experienced phenomenal growth having doubled its subscribers from 600,000 in October 2017 to 1.3million currently. He attributed this upward trajectory to the intensive acquisition drive that NetOne has embarked on to increase the OneMoney footprint across the country.

Presenting on the company’s performance for the previous year, the Chief Finance Officer, Mrs Sibusisiwe Ndhlovu lamented the company’s 2017 results which were affected by the exchange losses relating to external loans that the company accessed to finance its network expansion projects. This exchange loss of $13.5 million coupled with various legacy fines and penalties relating to statutory obligations resulted in a total loss of $57.8 million.

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