Vodacom revenue slides on mobile fee cuts

Johannesburg - Vodacom Group [JSE:VOD], the mobile operator with the most subscribers in South Africa, said third-quarter revenue fell after the communications regulator reduced the fees it can charge other operators for using its network.

Sales decreased 1.1% to R20bn in the three months through December, the Johannesburg-based company said in a Wednesday statement. Data revenue gained 20% while active subscriber numbers rose 9% to 61.1 million.

“There was a significant impact from the 50% decline in mobile termination rates in South Africa, increased competition and we’re seeing increased pressure on consumer spending,” Chief Executive Officer Shameel Joosub said in the statement.

Vodacom is seeking to boost internet services and expand in Africa through acquisitions as voice revenue drops in its home South African market.

The company, which is 65% owned by Newbury, England-based Vodafone Group, agreed to buy internet provider Neotel for R7bn last year and is said to be in talks to buy Tanzanian phone company Zantel, people with knowledge of the matter said last month.