Econet Wireless Zimbabwe Limited (EWZL) has recorded a profit of ZWL$106 358 000 after a demerger with the company’s financial technology business Cassava Smartech Zimbabwe Limited (CSZL), the Audited Abridged Consolidated Financial Results for the year ended 28 February 2019 have revealed.
Cassava SmarTech Zimbabwe Limited (CSZL) was demerged from Econet Wireless last year in December, and listed on the Zimbabwe Stock Exchange.
CSZL is now the new holding company for EcoCash, EcoSure, Econet Insurance, Steward Bank and Steward Health.
Econet’s total revenue including demerged operations increased by 37% recording $1.136 billion from $831.6 million recorded in the first half of 2018.
After the demerger, revenue increased to ZWL$327 979 in 2019 from ZWL$257 752 recorded in the previous year. This was from Econet’s mobile telecommunication and value added services.
Profits after tax decreased by 20% from $132 million in 2018 to $106 million in 2019. Excluding the demerger operations, profits after tax were ZWL$61.6 million last year and 11.4 million as at February 2019.
In a statement EWZL chairman, Dr James Myers said the company will continue focusing on internet connectivity whilst maintaining a synergy with Cassava Smartech in smart technology business.
“Econet continues to pursue data revenue growth initiatives in response to the increased use of internet services, driven in part by growth in the adoption of smart phones by our customers, as the prices of these devices continue to fall. Strategic partnerships with key vendors remain a priority for the business,” he said
“The group will continue to collaborate with smart technology businesses in Cassava Smartech for separate value creation objectives while recognizing and leveraging the synergies that have historically existed between the two separate entities,”.