Econet Wireless Zimbabwe posts 10 pct fall in full year profit

by Reuters 0

HARARE (Reuters) – Econet Wireless, Zimbabwe’s biggest mobile telecoms company, reported a 10 percent fall in after-tax profit to $36.2 million on Wednesday, blaming a decline in consumer spending.

Revenue for the year to February 2017 fell to $622 million from $641 million last year, the company said in statement.

The southern African nation’s economy flatlined last year, while shortages of foreign currency and cash have hit consumer spending, with businesses struggling to pay for imports and repay foreign loans.

In January Econet went to the market to raise $130 million from shareholders to avoid defaulting on its foreign loans, which it was struggling to settle due to the dollar shortage.

(Reporting by MacDonald Dzirutwe; Editing by Greg Mahlich)