ANNUAL 2009 REPORT communication the frontiers of Expanding
Enlarge the place of your tent, stretch your tent curtains wide, do not hold back; lengthen your cords, strengthen your stakes.
Expanding the frontiers of communication We are working relentlessly to achieve sustainable growth to extend the frontiers of c
Contents Econet Today Financial Highlights Organisational Vision Board of Directors Econet Corporate Profile Chairman's Stateme
Financial Highlights SUMMARY (ZW$) 2009 TRADING RESULTS Total Revenue -Cellular Network Operations -Other Services Operating pr
We owe our success to our customers because they have fuelled our growth. We strive to understand their needs and find ways of
Organisational Vision Our Vision To provide telecommunications to all the people of Zimbabwe. Our Mission world-class standards
Board of Directors As at 28 February 2009 T. Nyambirai Chairman Mr Nyambirai is the founder and Group Chief Executive Officer o
Board of Directors As at 28 February 2009 Z. M. T. Wazara Non-Executive Mr Wazara joined Econet Wireless in December 1996 and b
Econet Corporate Profile ECONET WIRELESS HOLDINGS LIMITED company of businesses involved in cellular operations, Econet Wireles
The business will continue innovating to meet the evolving needs of our customers; hence the investment in new technologies suc
Chairman’s Statement to the Shareholders I am pleased to present the Group’s audited financial results provider of telecommunic
Highlights 1,2 million Revenue Connected capacity US$3,1million US$0,01 before. Profit before tax (US$) US$87,9 million an adve
Chief Executive Officer’s Operations Review OPERATING ENVIRONMENT The macroeconomic environment deteriorated throughout the yea
the prepaid offering. USAGE the Econet subscriber mix was significantly skewed towards two Matabeleland provinces. Because of t
Econet in the Community community social health programme (“Stop Cholera Campaign”) Scholarship) and social welfare (Capernaum
Corporate Social Investment We remain firm in our belief that a company's success cannot be measured on financial performance a
Directors’ Report The directors have pleasure in presenting their eleventh Annual Report and the Audited Financial Statements o
Directors’ Responsibility For Financial Reporting information. The financial statements have not been fair presentation of the
Corporate Governance and its subsidiary companies. The organisational values and the guiding principles of Econet Wireless Hold
Group Company Secretary. The Group Company Secretary All Directors have access to the advice and services of the committee meet
Corporate Governance Foreign Loans Committee The committee reviews the Group's major foreign loans obligations and puts forward
head of the division attends the meetings of the Audit and Remuneration Committee and submits a report at the overall responsib
Certificate by Company Secretary lodged with the Registrar of Companies, the returns required under the Act and the returns are
Deloitte & Touche Kenilworth Gardens 1 Kenilworth Road Newlands PO Box 267 HARARE Zimbabwe Tel: (263) (4) 746248/54 (263) (4) 7
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ECONET WIRELESS HOLDINGS LIMITED (Continued) Adverse opinion on non-compli
Margins improved significantly following the dollarisation of the tariff. We continue to seek ways of enhancing shareholder str
Consolidated Income Statement For the year ended 28 February 2009 All figures in ZW$ NOTES 2009 Revenue Cost of sales and exter
Consolidated Balance Sheet As at 28 February 2009 All figures in ZW$ NOTES 2009 ASSETS Non-current assets Property, plant and e
Company Balance Sheet As at 28 February 2009 All figures in ZW$ NOTES 2009 ASSETS Non-current assets Property, plant and equipm
Consolidated Statement of Changes in Equity For the year ended 28 February 2009 RESERVES ACCUMULATED ATTRIBUTABLE TO LOSSES EQU
Consolidated Cash Flow Statement For the year ended 28 February 2009 All figures in ZW$ NOTES 2009 Cash flows to operating acti
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 1 GENERAL INFORMATION The Company was incorp
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 4 4.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLI
4 4.5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Business combinations Acquisitions of subsidiaries and businesses
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 4 4.8 SUMMARY OF SIGNIFICANT ACCOUNTING POLI
4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 4.12 Borrowing costs Borrowing costs directly attributable to the acqu
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 4.17 Revenue recognition (continued) 4.17.2 Pre-paid products Starter
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 4 4.18 SUMMARY OF SIGNIFICANT ACCOUNTING POL
4 4.21.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Financial assets (continued) 4.21.1.1 Financial assets at FVTPL
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 4 4.21.1 SUMMARY OF SIGNIFICANT ACCOUNTING P
4 4.21.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Financial liabilities (continued) 4.21.2.3 Derecognition of fin
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 5 SIGNIFICANT ASSUMPTIONS AND KEY SOURCES OF
All figures in ZW$ 2009 7 REVENUE Revenue is made up of : Local airtime Interconnection fees International airtime Automated tr
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 All figures in ZW$ 2009 2009 Percentage 11 T
All figures in ZW$ GROUP 2009 2008 12 LOSS PER SHARE (continued) Number of shares Weighted number of ordinary shares for the pu
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 All figures in ZW$ 2009 14 INVESTMENT PROPER
All figures in ZW$ PERCENTAGE HOLDINGS 2009 17 17.1 INVESTMENTS AND LOANS IN SUBSIDIARIES COMPANY Cost of investments Econet Wi
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 All figures in ZW$ 2009 18 HELD-TO-MATURITY
All figures in ZW$ 2009 20 AVAILABLE-FOR-SALE INVESTMENTS Quoted investments Opening balance Additions (cash) Fair value gain C
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 All figures in ZW$ 2009 24 TRADE AND OTHER R
25.2 All figures in ZW$ SHARE CAPITAL (continued) Balance at 29 February 2008 Issue of shares Script dividend Share buy-backs M
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 28 FEBRUARY 2009 CLASS “A” SHARES ORDINARY S
All figures in ZW$ 2009 27 PROVISIONS AND ACCRUALS Provisions and accruals The provisions and accruals balance is made up of th
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 29 INTEREST-BEARING DEBT At 1 March 2008 Add
30 All figures in ZW$ 2009 CASH FLOW INFORMATION Loss before taxation (1 727 210 752) 741 051 (351 388) (11 886 095) 13 008 483
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 31 All figures in ZW$ RELATED PARTY TRANSACT
33 33.1 GROUP EMPLOYEE BENEFITS Econet Wireless Group Pension Fund This is a defined contribution scheme. under the scheme each
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 34 34.4 FINANCIAL INSTRUMENTS (continued) Fi
34 34.8 FINANCIAL INSTRUMENTS (continued) Other price risks (continued) The Group invests in tradable securities that are quote
Notes to the Consolidated Financial Statements For the year ended 28 February 2009 All figures in US$ 2009 37 CAPITAL COMMITMEN
communications industry in Zimbabwe. Our Position in key customer segments. revenue increased and we strengthened our Econet co
Supplementary Information For the year ended 28 February 2009 Consolidated Balance Sheet As at 28 February 2009 All figures in
Consolidated Income Statement For the year ended 28 February 2009 All figures in US$ 2009 Revenue Cost of sales and external se
Shareholders Analysis For the year ended 28 February 2009 SHAREHOLDERS ANALYSIS AS AT 28 FEBRUARY 2009 NUMBER OF SHAREHOLDERS %
Financial Diary 28 August 2009 September 2009 October 2009 28 February 2010 April 2010 May 2010 June 2010 Eleventh Annual Gener
Notice to Members 2009, at 10.00 a.m. for the following purposes: staff canteen, at the registered office of the Company at Eco
Notice to Members 7. Any Other Business To transact such other business as may be transacted at an Annual General Meeting. NOTE
Corporate Information and Advisory Company registration number 7548/98 Econet Park, 2 Old Mutare Road Registered Office Princip
Our Strategic Business Partnership AFREXIMBANK The opportunities in the market have made it imperative to broaden our relations