NetOne posts $10 million profit

By Staff reporter | 11 Jul 2019 at 17:33hrs
During their 3rd Annual General Meeting held in Harare yesterday, Chief Executive Officer of the state-owned enterprise NetOne, Mr Lazarus Muchenje said that the company recorded a profit of $10,2 million.

In addition, NetOne realized a revenue of $119,2 million showing a 13% growth from the previous year. It seems Muchenje's strategy dubbed Back to Basics" has done wonders if not miracles for the former loss-making entity.

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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