Potraz revenue up 26 percent
THE Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz), surpassed its 2017 revenue target by 26 percent on the back of lower operating costs in the year to December 31, 2017.
Total revenue for the year amounted to $31,9 million. Cost containment measures were implemented in the year leading to a 27 percent savings on the budgeted expenditure which resulted in the telcos’ regulator achieving a surplus of $13,5 million.
“The authority weathered the economic storm ion 2017 and experienced a healthy working capital position with revenue targets surpassed by 26 percent,” said Potraz chairman Ozias Bvute.
“A surplus of $13,5 of $13,5 million at the end of the financial year was recorded, courtesy of enhanced cost containment initiatives by management,” he said.
Potraz held its second annual general meeting (AGM) yesterday in line with increasing transparency and accountability.
During the year under review, the Universal Services Fund (USF) revenue grew by 11 percent.
Despite the challenging economic environment, Potraz continued with rollout of projects aimed at extending postal and telecommunications services to both the unserved and under-served parts of the country.
Operating were reduced with 79 percent of savings achieved against budget. During the period under review, an operating surplus of $14,9 million was realised for deployment to meet USF’s mandate.
Last year, the USF made a $19 million deposit towards the acquisition of a 60 percent stake in Telecel International, the shareholder of Telecel Zimbabwe, which Mr Bvute said was a positive move.
“The acquisition significantly strengthened the USF’s statements of financial position from $21,4 million in 2016, to $32,1 million in 2017.
“Another key strategic thrust for the USF was towards the provision of internet access to the under-served communities and the disadvantaged citizenry. This tactical drive saw the deployment of more than $7,3 million towards the construction of Community Information Centres (CICs),” he said.
Sector wide, revenue grew by 11 percent to record $1,1 billion from $998 million recorded in 2016.
POTRAZ director general Dr Gift Machengete attributed the growth to an upsurge in data and internet services in the country.
Mobile revenues increased by 17,6 percent to $849 million while internet access providers registered the biggest revenue growth 17,8 percent to $186 million.
Despite growth in other markets, the fixed telephone network registered a decline of 0,02 percent. Despite the growth, Dr Machengete acknowledged the challenging operating environment that limited investment in the sector.
“The year 2017, as previous years was characterised by liquidity constraints and deteriorating foreign currency shortages.
“Investment in the sector was therefore depressed given the sector’s dependency on foreign equipment for new infrastructure and maintenance.
“The dynamic developments and fast changing technological advances added pressure to the bedevilled sector,” said Dr Machengete.
POTRAZ anticipates to maintain the growth trajectory in the current financial year and going forward as the authority continues with good governance, transparency and accountability.