NetOne loss widens to US$2,2 million
NETONE’S revenue for the five months to May rose to US$48,5 million, a 9,5 percent increase from US$44,3 million recorded during the same period last year.
Giving oral evidence before a Parliamentary Committee on Information Communication and Technology, on Monday, NetOne chief finance officer, Sibusisiwe Ndlovu, said the revenue was impacted on by high overheads as well as legacy issues.
She said overheads went up to US$23 million from US$20,6 million largely due to additional company units which were not being factored in in prior periods.
Gross profit during the period rose to US$34 million compared to US$29 million last year.
“The growth in gross profit is also largely on the back of a reduction of cost of sales to US$13,9 million from US$15 million in the same period last year,” she said.
Earnings before interest, taxes, depreciation and amortization declined to US$8,5 million from US$11,3 million while the loss position for the period widened to US$2,1 million from a loss position of US$1,1 million last year.
Acting chief executive officer Brian Mutandiro said as part of the ongoing company transformation, daily revenue since May was now averaging US$300 000 from US$250 000 at beginning of year.
“We are transforming the business from being network-centric to customer centric and we are now seeing the fruits. We anticipate a second half recovery which will drive our revenues and hopefully by year end we will declare a dividend to the shareholder,” he said.
He said the company will continue to focus on deriving value from existing capacity to increase revenue generation while targeting a profit position by year end.
NetOne is 100 percent owned by government.
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