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State owned converged service provider, TelOne realized growth in 2023 registering an inflation-adjusted profit before tax and depreciation (EBITDA) of ZW$227,9 billion up from ZW$54,6 billion achieved in the previous year.
Their Operating expenses however increased by 116% from ZW$218,3 billion in 2022 to ZW$470,7 billion in 2023 in inflation-adjusted terms and this effectively means that the company registered an operating loss of ZW$252.4 billion.
The cost-to-income ratio reduced from 87% to 84% due to sustained efforts by Management to contain costs as a counter-measure against the negative macro-economic variables.
According to TelOne, this was mainly driven by the depreciation of the local currency which had a pass-through effect on inflation, TelOne’s liquidity status during the period under review was negatively affected by a high debtors’ book dominated by the Government of Zimbabwe and a loss of real value on ZW$ due to inflation and unstable exchange rates.
The impact of liquidity constraints has been pervasive, cutting across operations and capital deployment initiatives.
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