FIXED network TelOne’s revenue tumbled in the first six months of this year to $49m from about $60m over the same period last year, results announced Managing Director (MD) Chipo Mutasa showed last Friday.
Mutasa attributed the decline to the tight liquidity environment in the economy and the growing impact of Over the Top Services (OTTs) as migration by the market from fixed line to mobile services.
“Despite the decline in revenue, TelOne continues to grow its presence in the broadband and internet access provision space,” said Mutasa.
“(The company registered) a market share of 44 percent in the fixed broadband services which contributed revenues of $28.7 million last year, an increase of 3 percent.
“Although the broadband revenues are on the increase, the quantum of the increase is not yet enough to offset the decline in voice revenue.”
Mutasa expressed concern over debtors’ book with the parastatal owed some $263.5 million by its customers.
Corporate clients and SMEs owe $92.2m, households $82.7m, government $41.1 m, other parastatals $36.9 million while wholesalers and local authorities have yet to pay some $10.6 million.
The company introduced various measures to contain costs which include elimination of middlemen when buying from manufacturers and rental reduction through moving out of rented properties.
A salary cut of 15 percent was also imposed across the board in August last year.
Finance Minister who attended the company’s AGM last Friday promised to expedite the finalisation of a $98 million facility for TelOne from agreed with China but urged management to diversify product range. Advertisement