Vodacom ups revenue on data boost

Johannesburg - Vodacom Group [JSE:VOD], a unit of Britian’s Vodafone, reported a slight percent rise in first-half profit on Monday, helped by continued growth in its mobile data business and expansion outside its home market.

However, the company cautioned that it expects growth to slow in the second half.

Vodacom, which also operates in Tanzania, Mozambique and the Democratic Republic of Congo, said diluted headline earnings per share totalled 322.3 cents in the six months to end-September, compared with 303c a year earlier.

Vodacom has been increasing its revenue from mobile data, which is seen as having a huge growth potential in Africa, where fixed-line internet access is still rare.

Although it boasts the largest market share in South Africa, Vodacom is dwarfed elsewhere by bigger rival MTN Group [JSE:MTN].

Revenue totalled R31.75bn compared with R29.52bn a year earlier.

Revenue from data rose by more than 30%, while customers increased by more than 20% both in South Africa and in international markets.

The company also hiked its first-half dividend to 260c from 180c.

Shares of Vodacom are up nearly 17% so far this year, compared with a flat Johannesburg Top 40 - (Tradeable) [JSE:J200] index.