NetOne targeting US$150 million revenue in F16
MOBILE network service provider NetOne has said it is targeting revenue of US$150 million in 2016, driven largely by the company’s expansion project which is being financed through the US$218 million loan facility from China’s Exim bank.
Managing Director, Reward Kangai, in an interview said cumulative revenue from January 2015 to November 2015, was at US$121mln whilst net profit was between US$2 and US$3mln. This is compared with revenue of $110mln for the full year in 2014.
“The US$218mln loan was a great leap for Netone and we are looking at around US$150mln in revenues this year owing to our network expansion projects among other contributors”, Kangai said.
“By November 2015 last year, our unaudited accounts indicated that revenue was at $121mln compared to $110mln the previous year,” he said.
Kangai said that the future was bright for NetOne as the US$218 mln loan injection was a great leap for the firm that saw it being able to construct a total of 148 Greenfield base stations in 2015 under the National Mobile Broadband Project which is expected to end in the first quarter of 2016.
“I’m proud to say we have managed to construct 148 Greenfield base stations under the National Mobile broadband project and it is the first time in the history of Netone that more than 100 base stations have been constructed at once,” he said.
Kangai said NetOne which has an installed capacity of 8mln subscribers had the potential to become the leading mobile operator in the country.
He however said that despite finances being the main challenge, the company is targeting 5mln subscribers by year end from approximately US3.6mln
NetOne would continue on its network expansion course and Kangai mentioned that the parastatal still needed another US$600mln to complete its network expansion exercise.
He said the efforts behind the US$218mln 4G/LTE project has placed NetOne as the holder of the widest LTE network in the country and highlights a huge part of NetOne’s future strategy which is geared on network utilisation and product diversification.
In addition, NetOne will this year launch a mobile health service delivery system that will see patients in remote rural clinics being linked with doctors in provincial hospitals for diagnosis, bridging the distance barrier. The service will ride on the NetOne 4G network access.
“The pilot project is currently being carried out in Nyanga and we are awaiting approval from the Ministry of Health. The system will enable a patient at a clinic to be examined and diagnosed as well as get a prescription through a video compliment of the 4G network reducing costs and improving efficiency,” he said. FinX
Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette