Airtel records jump in revenue

BUUMBA CHIMBULU writes@SunZambianAIRTEL Network Zambia’s revenue has increased by 16 percent to K1.16 billion for the six months period to June this year.The revenue rose to K1.16 billion as at June 30, this year from K1 billion recorded the same period last year.This is according to a statement issued by Airtel Corporate Communications Office in […]

Airtel records jump in revenue
BUUMBA CHIMBULU writes@SunZambianAIRTEL Network Zambia’s revenue has increased by 16 percent to K1.16 billion for the six months period to June this year.The revenue rose to K1.16 billion as at June 30, this year from K1 billion recorded the same period last year.This is according to a statement issued by Airtel Corporate Communications Office in Lusaka yesterday.In addition, the company reported an increase in customer base by 17 per cent to 6.188 million as at June this year from 5.789 million the previous year.Announcing the results in Lusaka, Board Chairperson Monica Katebe -Musonda said the company reported an increase in operating profit at K308 million for the period under review.This represents a growth of 10.83 per cent compared to the same period last year.Ms Katebe-Musonda explained that this was mainly as a result of strong performance on revenue and prudent management of operating expenses in view of harsh economic environment.“During the six months period ended 30 June 2020, the COVID-19 global pandemic has disrupted the conduct of business across the globe and Zambia has not been spared.“Airtel Networks Zambia Plc has joined the Government and other Enterprises in the fight against COVID-19 by donating K5 million to the COVID-19 fund,” she said.Ms Katebe-Musonda said the Zambian economy had also encountered significant macro-economic headwinds resulting from the economic effects of COVID-19.“The exchange rate depreciated by close to 40 per cent in the period under review compared to the same period last year and the resulting inflationary effect cascaded into the increase in the prices of consumer goods and services exacerbating the strain on disposable incomes of our customers.“Despite this stress on consumers, COVID-19 brought about new ways of conducting business that resulted in an increase in demand for Voice and Data products and services as corporates and Small and Medium Enterprises (SMEs) resorted to work from home,” she added.Ms Katebe- Musonda said the profit after tax went down to negative K275 million compared to negative 29 million posted the same period last year.This was mainly a result of unrealized exchange loss on the foreign currency denominated liabilities resulting from the devaluation of the kwacha by close to 40 per cent, year on year.She said to mitigate the same, management would continue to work on increased hedging and debt restructuring. The Sun