1999 2000 Econet Wireless Holdings Limited Annual Report 2008
our inspired determination to offer world-class total communication solutions to people in an ever changing world. Our history
Contents Econet Today Financial Highlights Board of Directors Corporate Profile Group Structure Organisational Vision 3 1 4 7 6
Financial Highlights Subscribers (thousands) 653 936 subscribers 640 450 175 250 654 2004 2005 2006 2007 2008 At Econet we insp
Our vision, our inspiration At Econet we are inspired by our vision. Our focus remains that of giving our customers world-class
Organisational Vision Our Vision To provide telecommunications to all the people of Zimbabwe. Our Mission world-class standards
Board of Directors solid performance and strong The Econet Board ensures shareholder returns. T. NYAMBIRAI Chairman *Executive
Board of Directors MTN in the Western and Eastern Cape Provinces in South Africa, among other previous cellular positions. Befo
Econet Corporate Profile telecommunications to all the will continue to provide people of Zimbabwe, Econet In line with our vis
Group Structure HOLDINGS LIMITED ECONET WIRELESS (PVT) LTD DATA CONTROL AND SYSTEMS (1996) (PVT) LTD TRANSACTION PROCESSING SYS
Our brands, our future Our brands differentiate us from competitor products and services and this has enabled the business to b
Chairman’s Statement As Econet celebrates 10 years in business, it is of operations, which bears testimony of the imperative th
Chairman’s Statement Earnings per share The Group's basic earnings per share was $2 100 938. Debt During the period under revie
At Econet we have a strong passion for our customers and we strive to understand their needs. We will continue with our profess
Chief Executive Officer’s Operations Review The Group has grown from strength to strength in network expansion and the building
Against this background, the Group took a decision not to connect new subscribers. As a result, Econet's market position remain
Our people, our strength Our people are the soul of our business. We encourage them to get the most out of their careers and en
Chief Executive Officer’s Operations Review gives it a competitive edge over other listed companies whilst recognising internal
Our community, our responsibility At Econet we believe that “it is more blessed to give than to receive”. Acts 20 v 35(KJV) We
Corporate Social Investment Econet is committed to contributing to socio-economic development in the countries it operates in.
Directors’ Report The Directors have pleasure in presenting their Tenth Annual Report and the Audited Financial Statements of E
Statement of Directors’ Responsibilities presentation of the financial statements and related information. Econet Wireless adeq
Corporate Governance companies, has continued with its commitment to high organisational values and ethical behaviour within th
Services (Private) Limited, which is one of the Group's financial advisors. Mr Nyambirai is also a partner in Mtetwa and Mr Nya
Corporate Governance the independent auditors, management and internal auditors staff and risk management matters. accounting p
period”, are required to obtain the clearance of the Chairman. of the Group, even outside of the Group's “closed or block terms
Certificate by Company Secretary terms of this Act and that all such returns are true, correct and up to date. Companies, all s
Deloitte & Touche Kenilworth Gardens 1 Kenilworth Road Newlands PO Box 267 HARARE Zimbabwe Tel: (263) (4) 746248/54 (263) (4) 7
growth in market The Group enjoyed significant making it one of the largest companies in Zimbabwe capitalisation Econet Wireles
Consolidated Income Statements For the year ended 29 February 2008 All figures in Z $’000 NOTES INFLATION ADJUSTED 2008 2007 20
Consolidated Balance Sheets As at 29 February 2008 All figures in Z $’000 NOTES INFLATION ADJUSTED 2008 2007 2008 HISTORICAL 20
Company Balance Sheets As at 29 February 2008 All figures in Z $’000 NOTES INFLATION ADJUSTED 2008 2007 2008 HISTORICAL 2007 AS
Consolidated Statements of Changes in Equity For the year ended 29 February 2008 INFLATION ADJUSTED All figures in Z $’000 SHAR
FOREIGN CURRENCY TRANSLATION RESERVES REVALUATION RESERVES CAPITAL RESERVES (836 292 471) 1 285 487 637 187 782 914 423 (57 356
Consolidated Statements of Changes in Equity For the year ended 29 February 2008 HISTORICAL All figures in Z $’000 SHARE CAPITA
FOREIGN CURRENCY TRANSLATION RESERVES REVALUATION RESERVES OTHER RESERVES (30 587) 388 673 117 351 472 (34 761 703) 82 947 855
Consolidated Cash Flow Statements For the year ended 29 February 2008 All figures in Z $’000 NOTES INFLATION ADJUSTED 2008 2007
Notes to the Financial Statements For the year ended 29 February 2008 1 GENERAL INFORMATION The Company was incorporated in Zim
Notes to the Financial Statements For the year ended 29 February 2008 4 4.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continu
4 4.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Business combinations (continued) accordance with IFRS 5, Non-curr
Notes to the Financial Statements For the year ended 29 February 2008 4 4.7 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continu
4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 4.11 Borrowing costs Borrowing costs directly attributable to the acqu
Notes to the Financial Statements For the year ended 29 February 2008 4 4.14 Leases SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
4 4.16.3 Internet services Subscriptions Subscriptions revenue is recognised on a straight-line basis over the period it relate
Notes to the Financial Statements For the year ended 29 February 2008 4 4.19 Share-based payments (continued) Equity-settled sh
4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 4.20.5 Impairment of financial assets (continued) For unlisted shares
Notes to the Financial Statements For the year ended 29 February 2008 4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
5 KEY SOURCES OF ESTIMATION UNCERTAINTY (continued) Inflation adjustment In restating the historical accounting records for inf
Notes to the Financial Statements For the year ended 29 February 2008 HISTORICAL All figures in Z $’000 CELLULAR NETWORK OPERAT
All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008 HISTORICAL 2007 8 (LOSS)/PROFIT FROM OPERATIONS This is arrived at aft
Notes to the Financial Statements For the year ended 29 February 2008 All figures in Z $’000 INFLATION ADJUSTED 2008 GROUP 2007
INFLATION ADJUSTED All figures in Z $’000 13 PROPERTY, PLANT AND EQUIPMENT LAND AND BUILDINGS NETWORK EQUIPMENT COMPUTER EQUIPM
Notes to the Financial Statements For the year ended 29 February 2008 All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008
16 DEFERRED TAXATION The following are the major deferred tax liabilities and assets recognised by the Group and the movements
Notes to the Financial Statements For the year ended 29 February 2008 17 INVESTMENTS AND LOANS IN SUBSIDIARIES COMPANY 17.1 Cos
All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008 HISTORICAL 2007 18 PROJECT INVESTMENTS Gulfsat Maghreb SA (unquoted) P
Notes to the Financial Statements For the year ended 29 February 2008 All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008
All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008 HISTORICAL 2007 20 Available-for-sale investments (continued) 51 460 2
Notes to the Financial Statements For the year ended 29 February 2008 All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008
All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008 HISTORICAL 2007 25 SHARE CAPITAL 25.1 Authorised 300 000 000 (2007 - 3
Notes to the Financial Statements For the year ended 29 February 2008 25 SHARE CAPITAL (continued) 25.4 Share issues During the
25.7 Directors' shareholding (continued) 28 FEBRUARY 2007 CLASS "A" ORDINARY SHARES ORDINARY SHARES S.T. Masiyiwa T. Nyambirai
Notes to the Financial Statements For the year ended 29 February 2008 All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008
All figures in Z $’000 INFLATION ADJUSTED 2008 2007 2008 HISTORICAL 2007 30 CASH FLOW INFORMATION (581 715 628 077) 213 810 373
Notes to the Financial Statements For the year ended 29 February 2008 30 All figures in Z $’000 INFLATION ADJUSTED 2008 2007 20
31 RELATED PARTY TRANSACTIONS (continued) Name of Party Relationship Nature of transaction/balance Amount 28/02/08 Amount 28/02
Notes to the Financial Statements For the year ended 29 February 2008 32 SUBSIDIARIES 32.1 Acquisition of a subsidiary SUBSIDIA
32 32.3 Impairment of property, plant and equipment All figures in Z $’000 SUBSIDIARIES (continued) INFLATION ADJUSTED Charge t
Notes to the Financial Statements For the year ended 29 February 2008 33 GROUP EMPLOYEE BENEFIT (continued) 33.2 National Socia
34 FINANCIAL INSTRUMENTS (continued) 34.6 Foreign currency risk management The Group is exposed to foreign currency risk throug
Notes to the Financial Statements For the year ended 29 February 2008 34 FINANCIAL INSTRUMENTS (continued) 34.8 Other price ris
36 BORROWING POWERS In terms of the Company's Articles of Association, the Directors may exercise the powers of the Company to
Group Financial History (Z $’000 except where specified For the year ended 30 June for 2005 and 2004 FIVE-YEAR SUMMARY (INFLATI
Income Statement Revenue Cost of sales and external services Gross profit Operating costs Operating profit before exchange diff
Growth Statistics Since 1999 YEAR MOBILE SUBSCRIBERS SUBSCRIBERS NET INCREASE % CHANGE MINUTES (OUTGOING) MOU % CHANGE 1999 200
Shareholders Analysis As at 29 February 2008 SIZE OF SHAREHOLDING SHAREHOLDERS ANALYSIS AS AT 29 FEBRUARY 2008 0-100 101-200 20
Shareholders Analysis As at 29 February 2008 SIZE OF SHAREHOLDING SHAREHOLDERS ANALYSIS AS AT 29 FEBRUARY 2007 1-5 000 5 001-10
Notice to Members the following purposes: Ordinary Business 1. at the registered office of the Company at Econet Park, 2 Old Mu
Notice to Members 7. To transact such other business as may be transacted at an Annual General Meeting. Any Other Business the
Financial Calendar TENTH ANNUAL GENERAL MEETING REPORTS Financial year end audited results to 29 February 2008 Interim result f
Corporate Information and Advisory Corporate Information and Advisory Company registration number 7854/98 Registered Office Msa
Strategic Business Partnership expertise. services. partnerships. AFREXIMBANK Econet Wireless Holdings Limited Annual Report 20
Notes 80 Econet Wireless Holdings Limited Annual Report 2008
Proxy Form for the Annual General Meeting Friday, 29 August 2008, at 10.00 am by hand to: The Group Company Secretary For the T