Powertel Zimbabwe, an institution wholly owned by ZESA has finally bounced back to profitability, recording a profit $263 088, compared to a major loss of $3 039 885 last year.
Powertel announced this profit , last week at their Annual General Meeting, as a step towards the right direction, after spending years of recording continuous losses from both their parent company ZESA and then as an independent subsidiary.
The move also pushed the government to merge Powertel with other nonentities like Zarnet which have never recorded any significant revenues as government tried to curb bleeding over loss making State Owned Enterprises.
Powertel announced that the profit was recorded mainly due to the company’s turn around strategy in increasing revenue models , while deeply cutting costs towards profitability.
Powertel introduced new products like their Internet of Things, (IoT) services which have been backing their revenues well with a plethora of over the top services for ZESA and hardware elements to drive their profits high.
Amongst the chief services is their car tracking system which most government departments are using to monitor, control and track government truck usages, with CMED recently also stating that they are jumping on to the same technological bandwagon
Powertel has also increased availability of their hardware consumables which they sell to their clientele and this has reflected well in their balance sheets as they grow revenues towards profitability.
As Powertel bounces back to profitability, it was also noted that the stakeholders had strong reservations that the demerger from ZESA would take away its mandate to maintain and control the power grid system which would negatively affect the operations of Powertel as it has been doing.
The national power grid system runs on Powertel which connects many critical state institutions and they do so over their fibre connectivity as the Internet access Provider.
Another major issue feared is that Powertel connects ZESA over fibre over underground Pylons which is a strong national grid system, which should be demerged, meaning government will need to get another ISP to do the same job they have been doing , which is technically a waste of resources.