• Fri. Apr 19th, 2024

EcoCash shares slip despite return to profit

ByETimes

Nov 10, 2023

By ETimes

EcoCash’s shares plunged 3.50% on Thursday despite a return to profit in the half year ended 31 August 2023.

Initially focusing on mobile money, EcoCash began as a fintech company and has now grown into a full-fledged “smartech” enterprise, continuously seeking new ways to solve problems in the real world with creative, inclusive, dependable, and stable digital solutions.

Albeit topping Thursday’s losers set, EcoCash is currently the ninth most valuable stock on the Zimbabwe Stock Exchange with a market capitalization of $337 billion, which makes up about 2.4% of the ZSE equity market.

The counter was 3.51% lower at $130.00.

As for the half year financials, EcoCash bounced back from a loss position to record a net profit of $130.2 million in H1 2024, underpinned by topline growth.

“The company experienced a net profit position of ZWL$130 million, notwithstanding exchange losses of ZW$167 billion associated with the debentures. The debentures were resolved by way of capital raised through a renounceable rights offer and as a result we anticipate improved profitability going forward,” Sherree Shereni, board chairperson, said in a statement accompanying the results.

In the period, revenue rose 40% to $218 billion from $155 billion in the comparative period.

Of the total revenue, FinTech business contributed 76% followed by InsurTech at 20% and lastly Digital Platforms at 4%.

“The Fintech business, namely EcoCash and Steward Bank, remains the largest contributor with performance being driven by new product innovations, and growth in the forex revenue contribution, a result of the deliberate growth in the USD business.”

It did not declare a dividend – Harare

By ETimes

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