Zimbabwe’s mobile network operators (MNOs) are expected to come under increasing pressure on profitability as operating expenses continue to rise faster than revenue, according to recent industry figures.
Although the operators have not yet published their financials for the quarter ending 31 December 2025, data contained in the fourth-quarter of 2025 by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) highlights mounting cost challenges across the sector.
Potraz reported that the industry’s cost-to-income ratio deteriorated during the quarter, climbing by 2.73 percentage points to 59.95 percent, compared with 57.22 percent in the previous quarter. The regulator attributed the decline in operational efficiency to expenses increasing at a much faster pace than revenues.
Telecoms firms in Zimbabwe have continued to grapple with heavy operating costs largely due to difficult economic conditions, inflationary pressures, high energy expenses, and the ongoing need to maintain network infrastructure.
Combined operating costs for mobile operators rose by 11.52 percent, increasing from ZiG4.16 billion in the third quarter to ZiG4.64 billion in the final quarter of 2025.
During the same period, industry revenue recorded slower growth of 6.33 percent, rising from ZiG7.27 billion to ZiG7.74 billion.
Data and internet services remained the largest source of income for mobile operators, contributing 50.75 percent of total revenue during the quarter. Potraz said this trend was driven by increasing use of platforms such as WhatsApp, along with high-bandwidth video streaming applications including YouTube and TikTok.
Revenue from local voice calls accounted for 34.76 percent of total earnings, down slightly from 35.73 percent in the previous quarter, reflecting a continued shift by consumers toward internet-based communication services.
SMS services generated 4.85 percent of sector revenue, while value-added offerings, including gaming services, cloud storage, and ringback tones, contributed 2.97 percent.
Average revenue per user, which measures the amount generated per subscriber, increased by 4.13 percent from ZiG442.70 to ZiG460.99 during the quarter.
In contrast, internet access providers experienced a decline in operating costs of 7.06 percent, a development Potraz said pointed to improved operational efficiency in that segment.
Revenue for IAPs rose slightly by 0.83 percent to ZiG2.53 billion, while capital expenditure edged up by 0.74 percent to ZiG217.48 million. – TML