The Sunday News
Rutendo Nyeve, Business Reporter
LEADING mobile banking services provider Fintech Ecocash Holdings Zimbabwe’s group revenue reportedly closed at ZWL$29.9 billion, 26 percent above the financial year 2021 performance of ZWL$23.8 billion according to a performance statement released by the board chairperson this Tuesday.
The Group’s financial results and the commentary were prepared on an inflation-adjusted basis as required by IAS 29 “Financial Reporting in Hyperinflationary Economies” while financial statements prepared under the historical cost convention have only been presented as supplementary information.
The financial year 2022 was yet another turbulent year for the global and local economy on account of the Covid-19 pandemic. Though the severity of the pandemic was curtailed through widespread vaccinations, lockdowns, decongestion of offices, and other migratory measures, Ecocash Board Chairperson Mr Sherree Shereni said many of their staff, customers, and families were and continue to be impacted.
“Our business has had to navigate an increasingly difficult local operating environment for the greater part of the year with the depreciation of the local currency, rising inflation, and the re-emergence of the parallel market all creating a cocktail of challenges that are impacting almost every business in the country.
“The resilience of our strategy, the commitment of our staff, the support of our stakeholders, and the relevance of our products and services has allowed us to navigate these operational difficulties. We remain committed to providing digital solutions to the evolving needs of our diverse client base by bringing them the convenience they need,” said Mr Shereni.
He said regardless of the challenges, the group managed to register significant growth as evidenced by the group’s revenue closing and the group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin.
“Despite the challenges prevalent in financial year 2022, EcoCash Holdings Zimbabwe Limited delivered a commendable performance once again, with the Group’s revenue closing at ZWL29.9bn, 26% above the financial year 2021 performance of ZWL23.8 billion. The Fintech businesses remained the largest contributor to revenue, at 80 percent (2021: 77%). The contribution by the Insurtech business was at 14 percent, a slight decrease from the prior year’s 15 percent, and Vaya Technologies closed the year at a contribution of 6 percent. Management will continue to adapt business units’ operating models to both grow and diversify sources of revenue.
“The Group’s EBITDA margin improved from 15 percent to 18 percent because of the relentless focus on cost optimization. The Group will remain focused on revenue growth, operational efficiencies, and optimization of the balance sheet. During the year, 22 percent of the debenture holders exercised their option to redeem their debentures early in line with our balance sheet optimization strategy. Foreign currency exchange losses reduced from ZW$6.3 billion in 2021 to ZW$1.2 billion during the current year,” said Mr Shereni.
Meanwhile, the company said investing in the communities in which they operate and promoting social transformation remains of paramount importance. The Group’s vision of unlocking digital possibilities for community benefit was executed through the provision of access to world-class education materials through Higher Life Foundation in the past year. Consistent with the aim to provide support for essential health services, Ecocash invested in the provision of critical basic and large-scale, high-tech equipment, personal protective equipment, and training of healthcare workers through MARS and Higher Life Foundation.
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