Zimbabwe’s Converged Telecommunications Operator TelOne says it is operating at ZWL 3.2 billion profit, the company achieved 220% increase in EBITDA from ZWL1 billion in 2020.
In a press release issued on Thursday during TelOne’s 8th Annual General Meeting, the company highlighted that revenue for the period grew by 134% in inflation adjusted-terms and 187% in historical terms, driven by a 5% volume growth in broadband subscribers and tariff adjustments of 56% for Voice and 38.5% for Home broadband, which tariffs were effected in September 2021.
“The Company posted significant growth in 2021 registering an inflation adjusted profit before tax and depreciation of ZWL3.2 billion up from ZWL1 billion achieved in prior year.
In historical cost terms, ZWL2.1 billion was achieved during the period up from ZWL627 million achieved in 2020. This was against a balance sheet that is weighed down by legacy loans.”
“These loans are hampering the sourcing of new funding to deploy low cost structure LTE and Fibre technologies to replace costly to maintain and vandalism prone copper-based technology. This is also exerting pressure on the bottom line with excessive interest and exchange losses all totalling ZWL10.5billion, in inflation adjusted terms, for the year 2021.”
TelOne further added that it’s operating expenses increased by 112% from ZWL3.3billion in 2020 to ZWL7billion in 2021 in inflation adjusted terms. This was mainly driven by the depreciation of the local currency which had a pass-through effect on inflation as most of the Company’s suppliers link their prices to negative movements in the foreign exchange rate on the alternative exchange rate market.
“In response, the Company continued to implement cost containment measures during the year, with specific investments in the deployment of low cost structure LTE network to replace the copper network. The replacement of a costly vehicle fleet was among other key cost containment initiatives undertaken during the year.”
“TelOne ended the year under review with a net liability position of ZWL18.6billion (historic) and ZWL593million (inflation adjusted).”said TelOne.