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Vodacom's revenue increases

Johannesburg - Vodacom's group revenue for the quarter until the end of June shows an increase of 3.0% to R17.5bn.

This excludes the sale of Gateway Carrier Services.

The group's service revenue was flat at R14.6bn, up 2.3% on a normalised basis, while the data revenue was up 28.2%, with active data customers increasing 23.3% to 19.4m due to a continued drive for smartphone penetration.

The group revenue from on-going operations, adjusted for foreign exchange, increased 5.1%

The active customers increased 5.3% to 51.5m as international operations continued to expand their coverage.

There was a sustained high level of capital investment in all networks to support the 28.3% growth in group's voice traffic and higher data traffic volumes.

International operations delivered robust growth and service revenue was up 14.1% supported by customer growth and increased adoption of data and financial services.

The group's South African revenue was up 3.9%, boosted by increased handset sales.

according to Shameel Joosub, Vodacom Group CEO the group continues to perform well.

"We've seen a substantial increase in traffic as a direct result of executing on our commercial strategy and launching new products across all of our operations," he said.

"As an example, by focusing on value offerings that allow people to talk for longer, we've grown prepaid minutes of use by 21.0% in South Africa."

He said data and the international operations remain key parts of the group's growth story. Data revenue in South Africa increased 21.8% and now accounts for 21.3% of service revenue, up from 17.5% a year ago.

Continued network investment supported the increase in data traffic in South Africa, with 1.3m additional smartphones active and using on average 75% more data per device than a year ago.

Equipment sales, primarily smartphones and tablets, totalled R2.7bn in the quarter. The international operations added just under 3.3m customers over the last twelve months, with service revenue increasing 14.1%.

M-Pesa again performed well in Tanzania and has now been launched in Mozambique, DRC and Lesotho.


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