I look time to review Zamtel’s financial results for the period ending 30 April 2017, following various pronouncements made by Zamtel’s management on the performance of the business including the 1.7million subscribers on the Zamtel Network.
- Zamtel’s net revenue increased 3% to K38million at the end of April.
- The company’s operating costs, excluding depreciation, increased by 7% to K 42million. EBITDA deteriorated from -5% to -8% and the average EBITDA loss for the period being K 13million ( -8%).
- Zamtel recorded a loss before interest and tax of K 98million for the period ending April.
- Zamtel has not been able to maintain good cash management with no free cash flow and a high gearing ratio with very high net debt.
- Zamtel reported the active mobile subscribers increased to 1.7million, with a blended average revenue per user of K 10.
Zamtels’s key financial highlights include:
- Net revenue increased 3% to K38 million (K 151million for the period)
- Operating expenses, excluding depreciation, K 164million
- EBITDA loss of K 13million (-8%) while EBIT loss was K 98million
Shareholders’ value/investment to the sum of K 1.6billion have eroded by the accumulated loses of K 2.7billion
- Total liabilities are now K 2.9billion against K 300million current assets
- Owes ZRA and ZICTA over K 200m and K 80m respectively
Zamtel’s management should be sincere when they are communicating the performance of the business to us Zambians. This performance is way below its peers in the telecoms industry. Both MTN and Airtel’s average revenue per month is over K 160million. Let the public be the judge.
By Joseph Sichula