NetOne Posts 10 Million Profit

NetOne has recorded a profit of $10,2 million with a revenue increase of $119,2 million indicating a 13% growth from the previous year.

Speaking during their 3rd Annual General Meeting held in Harare, the Chief Executive Officer of the state-owned enterprise NetOne, Mr. Lazarus Muchenje posited that the company was on a growth trajectory, finally moving away from the loss-making position.

NetOne , TelOne and Powertel are all listed parastatals to go under the hammer, on partial privatization, as the government had tagged them loss-making entities, but it seems they are all on a recovery trajectory, changing their net worth.

Muchenje’s strategy dubbed Back to Basics” must be reaping rewards for the company as they stir the ship back to profitability, amidst legacy debts and bureaucratic processes, slowing down the company operations.

The strategy focuses on four key elements: quality network, quality distribution, quality contact centre and a quality balance sheet. There has been an increase in the demand for NetOne products and this is due to the enhanced network provision.

In his statement of address, Lazarus Muchenje said, ”The year commenced with a focus on narrowing the liquidity gap, I am pleased to report that the company has made strides in doing so with a major milestone being the reduction of negative working capital by 74% from $228,6 million to $59,4 million over the year ended 31 December 2018.”

The CEO’s vision to eliminate NetOne’s liquidity gap by the end of the 2019 financial year is proving to be a fruitful effort as the negative working capital is currently on $39 million and this is according to his statement during a media briefing conference.

”As a Board, we seek to create an enabling environment for the transformation of the business into a profitable tech-pioneering company. The growth in revenue was driven by 15% growth in subscribers coupled by re-engineering of our service offerings”, remarked the NetOne Board Chairman Mr James Mutizwa.

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