The operating environment remained challenging for the Group exacerbated by foreign currency shortages and power deficits on the national grid. Load shedding continued to strain the Group’s service delivery and increased its operational costs as the Company resorted to the use of diesel generators and solar for alternative power supply. The cost and availability of fuel added an additional challenge where backup power is reliant on generators. Regardless, the Group’s revenue increased by 304.93% to ZWL$27.39bn, anchored by the increased contribution of data services. Data revenue surged 398.80% from ZWL$1.90bn recorded in 1H21 to ZWL$9.45bn in 1H22, while local airtime revenue improved by 398.80% from ZWL$2.60mn to ZWL$10.15bn y/y. The cost containment measures implemented by management yielded positive results as evidenced by an increase in EBITDA margin to 55% in the period under review from 47% in the same comparable period last year. EBITDA for the Group significantly increased from ZWL$3.29bn to ZWL$15.21bn in 1H22, registering an uptick of 362%. Exchange losses arising from foreign currency denominated obligations decreased by 95.18% from ZWl$6.95bn to ZWl$335.41m. These losses arise because of the movements in the exchange rate on the foreign currency auction system and the consequent impact on the value of foreign currency liabilities, as expressed in the reporting currency. Consequently, PAT for the Group recovered by 300% from a loss position of ZWL$3.89bn to ZWL$7.80bn, outpacing annual inflation for the same period which stood at 50.22%. During the period under review, the Group upgraded its 4G network in Harare and Chitungwiza and this increased the data browsing speeds by 1.5 times. Additionally, 18 new base station sites were commissioned across the country to provide network connectivity in new suburbs that were previously un-serviced. However, capital investments remained severely constrained at 3% of revenue against an industry benchmark of between 10% to 15% of revenue, on account of foreign currency unavailability. Following the offer made by the Company for the early redemption of debentures, at the interbank rate, 22.46% debentures were offered for early redemption by the holders. The Company remains with an obligation for 904 778 710 debentures which are due for redemption in April 2023. Of these debentures, 50% of the liability is due from ...
