State-owned telecommunications company TelOne has reported strong revenue growth driven by surging demand for broadband services and its strategic partnership with satellite internet provider Starlink even as it battles mounting government debt, liquidity constraints and widespread infrastructure vandalism.
According to the company’s latest financial results, inflation-adjusted revenue rose by 10% to ZWG2.6 billion in 2025 underpinned by continued investment in network infrastructure and a sharp increase in data consumption.
Data usage increased by 60% compared to the previous year, reinforcing broadband as the company’s largest revenue contributor accounting for 81% of total income up from 79% in 2024.
TelOne also reported significant returns from its partnership with Starlink generating US$3.7 million in revenue during 2025, a dramatic increase from US$215 000 recorded the previous year.
Chief Executive Officer, Engineer Lawrence Nkala said the results demonstrate the company’s resilience and the success of its strategy to invest in next-generation connectivity.
“Our strong performance reflects the growing demand for reliable broadband services, continued investment in network infrastructure and the successful rollout of strategic partnerships such as Starlink. These initiatives have strengthened customer experience while positioning TelOne for sustainable future growth,” said Nkala.
Despite the positive revenue performance, operating expenses rose by 7% on an inflation-adjusted basis to ZWG1.7 billion largely due to exchange rate pressures that pushed up operating costs throughout the year.
The company nonetheless improved profitability, posting an inflation-adjusted EBITDA of ZWG540.37 million compared to ZWG478.74 million in 2024.
As part of its expansion strategy, TelOne invested US$7.6 million in network development with much of the expenditure directed towards expanding Fixed Wireless Access (FWA) and fibre connectivity across Zimbabwe.
The company also launched TelOne Connect Voice, a digital voice communication platform designed to complement its broadband and wireless offerings.
However, TelOne warned that persistent liquidity challenges continue to hamper operations.
Government debt owed to the company rose sharply by 163%, increasing from ZWG325.3 million at the end of 2024 to ZWG857.8 million in 2025.
Nkala said resolving outstanding government receivables remains critical to strengthening the company’s financial position.
“The increase in Government receivables continues to place pressure on our liquidity. We are actively engaging Government and other stakeholders to pursue structured settlement frameworks that will improve cash flow and support future investment,” he said.
The company also remains weighed down by inherited legacy loans valued at ZWG10.95 billion (US$421.59 million) despite maintaining a positive net asset position of ZWG1.4 billion.
According to Nkala, TelOne is working with its shareholder to implement a debt warehousing strategy aimed at separating legacy liabilities from current operations.
“By ring-fencing inherited debt, we will be better positioned to unlock affordable financing, accelerate infrastructure modernisation and strengthen our long-term competitiveness,” he said.
Efforts to raise capital have also been affected by Zimbabwe’s broader economic environment with investor caution, currency volatility and limited domestic financing slowing investment inflows.
Nevertheless, TelOne said it has continued funding network expansion through internally generated resources and short-term financing facilities.
The company also highlighted infrastructure theft as a growing operational threat.
During the year, incidents of copper cable theft increased by 336 cases, disrupting services for more than 43,000 customers.
The thefts cost TelOne more than US$341,000 in restoration expenses, while lost revenue reached US$370,524, reducing EBITDA by nearly 1.3%.
Nkala said the company would continue accelerating migration from copper infrastructure to fibre and wireless technologies to reduce vulnerability to vandalism.
Looking ahead, TelOne said 2026 marks the beginning of its new 2026–2030 Strategic Plan aligned with Zimbabwe’s National Development Strategy 2 and Vision 2030.
The company plans to intensify network expansion, diversify revenue streams and improve customer experience while maintaining a focus on digital transformation and cost efficiency.
“We are entering a new strategic cycle with confidence. Our focus remains on expanding access to high-speed connectivity, diversifying revenue, enhancing operational efficiency and delivering greater value to our customers as Zimbabwe’s digital economy continues to grow,” Nkala said.
