Chairman’s Statement to Shareholders
INTRODUCTION
Econet has maintained its position as the leader in mobile telecommunications in Zimbabwe, fulfilling the promise made 20 years ago to provide world-class telecommunications to all the people of Zimbabwe. We celebrate this significant milestone by presenting these results which show just how far we have come. This journey has seen us evolve from being a mobile voice telephony operator to become a fully-converged Telecommunications, Media and Technology (“TMT”) business that touches the lives of all Zimbabweans…
TMT OPERATING REVIEW
Anchored on its TMT strategy, the business has delivered a strong performance on all operating metrics in the year ended 28 February, 2018. Econet has enhanced the lives of Zimbabweans by providing smart technology and media solutions. Our products and services span across the following segments; Financial Technology (“Fintech”), Insurance (“Insure-tech”), Agriculture (“Agri-tech”), Health (“Health-tech”), Education (“Edu-tech”), Media and E-Commerce. The response from our customers to our products and services is truly inspiring. Our business model is premised on an unwavering belief in innovation and creativity in order to solve relevant problems. We realise that wherever there are problems that need to be solved, opportunities arise to provide relevant solutions and create value.
FINANCIAL REVIEW
We continued remodelling and optimising the business to enhance shareholder value. Austerity measures that we started implementing in 2015 have yielded exceptional results, resulting in the improvement of our margins. The EBITDA margin firmed to close the year at 41%, an increase from 36% in the previous year. Our revenue increased to US$832 million, largely driven by strong performance across all subsidiaries. The debt to equity ratio of the Group is now 8% against a prior year comparative of 18%. The Company no longer has exposure to any external US$ denominated amortising debt, following the Rights Offer.
OUTLOOK
We are pioneering, we are innovative. We continue to seek value creating opportunities for our stakeholders. Our TMT model will continue to be underpinned by our robust infrastructure, exceptional human capital, diverse product offerings and our innovative culture. We affirm our dedication to uncompromised quality and service excellence, as well as to delivering pioneering innovations that will transform our society…
APPRECIATION
I would like to take this opportunity to extend my profound appreciation to our customers, who have believed in the Company for the past 20 years. Our staff have made exceptional sacrifices to support the business and their contribution, passion and commitment to the business is impressive. Our business partners have been extremely supportive, we would like to express our appreciation to them. Our appreciation also extends to our regulators for their support and continued direction. To my fellow Board members, allow me to extend my sincere appreciation for your guidance and continued support.
DR J. MYERS
CHAIRMAN OF THE BOARD
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