Zimbabwe’s biggest mobile operator Econet Wireless has posted a 14% rise in revenues despite having to fork out high costs for diesel generators that power its base stations.

Douglas Mboweni, the chief executive officer of the company, has said at a results briefing of the company’s financials in Harare yesterday that“at any one time about 75% of our base stations will be running on diesel generators” because of the unreliability of power supplies in the country.

Company officials have also said that 3% of the company’s base stations are running on solar powered energy. Mboweni added that in the future, this could be enhanced as solar energy is abundantly available and relatively cheaper.

Meanwhile, revenues for the period -- which saw subscriber numbers climb 25% to 8 million -- firmed by 14% to reach $694.8 million.

This was on the back of a $147 million investment into network expansion. The investment undertaken during the year to end February was; however, 32% lower compared to the previous period.

Despite a stronger revenue position, Ray Chimanikire, the deputy finance director at Econet, said on Thursday that after tax profits for the period had decreased from $166 million the previous year to $140 million as a result of “depreciation” and a steep increase in interest costs.

Ebitda earnings for the period quickened by 5% to $305.3 million against a stronger Ebitda margin of 44%. Depreciation and amortisation increased by 54% to $71.6 million in line with growth of the asset base, said the company.

The EcoCash mobile money transfer service recorded strong growth during the period, with users rising by 62% to reach 2.1 million. Mboweni said the company’s future growth strategy would be underpinned by data, voice and value adding services such as EcoCash.

“The agency network that supports the EcoCash business witnessed a growth of 242% to close at 3000 agents thereby creating further employment opportunities,” the company said in a statement accompanying its financials.

During the year under review, Econet forayed into Zimbabwe’s financial services sector, after raising its stake in TN Bank -- founded by former Econet chairman, Tawanda Nyambirai -- to 98%. The acquisition of the bank is strategic in its pursuit of “services” hinged and supported by financial services.

“Mobile money services in Zimbabwe require banking licence and this investment (in TN Bank) allows the company to be firmly in control of the future growth prospects of its financial services related innovations,” the company said.

Chimanikire said Econet had “maintained (its) strong market position in terms of subscriber growth,” underpinned by massive investment into its network. Econet has said that it “invested over $1 billion in the Zimbabwean economy, making it one of the largest investors in the country”.