Zimbabwe Internet Access Providers (IAPs) have recorded a revenue increase of 82.4% from ZWL$137.7 million to ZWL$251.2 million, Potraz revealed.
The growth is against a 75% increase in operating costs from $111 million to $194.3 million which was mainly attributed to bandwidth costs which are paid in foreign currency.
The huge proportion of IAP operating costs if deducted from revenue to arrive at operating income, these IAPs did not make a significant profit from the third quarter of 2019.
According to the Regulator, the prevailing economic environment has negatively impacted on the performance of the sector in terms of operating costs and investment.
“Given the current inflationary pressures in the economy, operational cost containment will be even more crucial for operators to maintain profitability. The growth in operating costs poses a threat to operator viability and puts pressure on prices,” Potraz said.
Of the internet service providers, Liquid and Dandemutande recorded growth in revenue market share whilst market shares for the rest of the IAPs declined.