The government owned fixed telecommunications operator, TelOne on Friday held its second Annual General Meeting reflecting on 2015 Financial results. Despite a subdued economic environment, the liquidity crunch, and the decline in voice tariffs among other revenue decline attribution, the parastatal has recorded a significant operating profit of $ 5 million.
By The TechnoMag Team
Speaking during the Annual General Meeting event, the TelOne Managing Director Mrs Chipo Mutasa highlighted the major contributor of the slowdown progress, mainly being an enormous figure from the company’s debtors- sitting at $264 million.
” At $264 million the high debtors remain a cause for concern,” she said. The main defaulter being the Corporate and SMEs ( $92,2 million), followed by Households ( $82,7 million), Government ( $41,1 million), Parastatals ( $36,9 million) and lastly wholesale and local authorities ( $10, million).
TelOne recorded an annual revenue of $138 million, a decline from the $157 million recorded the previous year.
In-spite of this fall in revenue, the government owned company registered an increase in operating profit from $7 million to $8,2 million while its net profit decreased to $5,8 million.
Mtasa also said the government assisted loan of $98 million from the Chinese Exim Bank to be implemnetd this year will address the issues of having a prepaid platform. However, government debtors and parastatals remain static due to the offset arrangements which have stopped functioning.
TelOne has also announced a major increase in their fixed broadband subscribers and mainly ADSL and fibre as the state owned operator moves into convergence.