Although Zimbabwe's state-owned fixed phone operator TelOne has increased its data subscriber headcount by 14%, it continues to be impacted by a shortfall in payments due from mostly government-related clients.

During its recent AGM, the company confirmed that its pre-tax loss position for the financial year ended December 2018 amounted to 19.6 million Zimbabwe dollars.

This represents a 19.4% decrease from the amount of 39-million Zimbabwe dollars recorded at the previous contrasting period.

Despite this, Ebitda earnings for the period improved by 21% after operating costs were managed at an increasing pace of only 2% compared to an inflation rate of 42% for the period under review.

The TelOne trade debtors' book only marginally decreased to 151-million Zimbabwe dollars. Executives at the company say this is still high and is impacting on efforts to settle some obligations.

"The amount is made up of balances due from government ministries, parastatals, corporates and household clients. Government indebtedness to TelOne of ZWL93-million constitutes 62% of the net accounts receivables," the company stated.

Notwithstanding the crisis over lagging debts, data has presented TelOne with a brighter spot upon which to mount a revenue growth bid. The company has been buoyed by a 15% increase in broadband subscribers to 112 356 over the year to December 2018.

"For the period under review, broadband contribution to revenue has grown to 51% compared to 43% in 2017," added TelONe.

Broadband revenue for the period resultantly paced up from 45-million to 61.1-million Zimbabwe dollars. The company said it had witnessed growth in data revenue after adopting a National Broadband Project in 2016, with broadband, "resulting for the first time, in the off-setting of voice revenue loss by gain in data revenue".

TelOne's financial liabilities has remained worrisome as it owes service providers and other creditors about 162-million Zimbabwe dollars, with the figure rising 7% on the prior year period.

"The increase in foreign creditors is due to challenges faced by the business in securing foreign currency to settle foreign obligations amounting to $32 million," the company said.

Juliet Machoba, board chairperson for TelOne, anticipates a "challenging 2019 with foreign currency availability challenges and inflationary pressures in the country" becoming more pronounced.

"Despite these challenges, TelOne is looking forward to leveraging on government's digitalisation drive and e-government initiatives which are aligned to the company's strategic thrust for the next five years," she said.