NetOne has recorded a revenue growth of $115 million which is a meager 1% jump compared to last year revenue which was recorded at $114 million as their 2016 year ended.
According to their just-released financial report, revenue growth saw a sharp increase in their Gross Profit from $77 465 000 in 2015 to 82 931 000 in 2016, a move mainly attributed to their latest product offering with One Fusion, data bundles and the traditional Dollar A Day pushing up their sales.
However, NetOne is not in a position to make any profit, at least not within the next upcoming few years as the company is still being dogged by serious legacy debts, loans, SPB and Zimra fines they are still yet to clear.
The purported massive subscriber base increase has not turned around their revenue by any large margin as the National Average Revenue Per User (ARPU) Continues to go down due to economic hardships in Zimbabwe.
These are part of their major revenue drawbacks which will continuously sink their profit margins, even if they significantly jump their revenue streams.
In as many years, NetOne revenue has started to look upwards with a marginal increase of 1percent, it’s a positive figure they had not been making.
This comes at a time when all mobile networks recorded revenue decreases, which is a plus for NetOne as they begin to turn around their balance sheet for a prospective future.
“In 2016 alone Zimra hit NetoOe and they paid 10,1m in taxes and penalties and if this was not so the loss position could have been managed,” said NetOne.
In 2011 NetOne losses stood at 7 727 000 and have been narrowed to 2 736 000 in 2016.
Earnings before intrest tax depriciation and amortisation grew from 24 percent in 2015 to 36percent in 2016.
NetOne Also bemoaned operational costs of $400 000 only for fuel supplies to keep their generators running in areas where there is no electricity supply.