Vodacom sales growth up on data, mobile money take-up

2018-01-31 11:24 - John Bowker, Bloomberg
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Vodacom. (Duncan Alfreds, Fin24)

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Johannesburg - Vodacom [JSE:VOD] said third-quarter revenue growth accelerated as Africa’s biggest phone company by market capitalisation added customers and boosted sales from mobile money.

Revenue gained 6.7% to R22.6bn in the three months through December, the Johannesburg-based unit of Vodafone said in a statement on Wednesday. That compared with 1.2% in the same quarter a year earlier. Active subscriber numbers across all markets increased by 13% to 73.6 million.

In international markets such as Tanzania, Democratic Republic of Congo and Mozambique, growth was driven by data sales as more customers switch to smartphones and internet costs fall.

Vodafone’s revenue at M-Pesa, the mobile-banking service popular in countries under served by traditional banks, soared 33% as the company broadens its offering in sub-Saharan Africa.

The shares have gained 6.4% this year, valuing the company at R267bn. That compares with R247bn at cross-town rival MTN [JSE:MTN], Africa’s biggest wireless carrier by sales and customers.

Vodacom shares were trading 5.21% up on the JSE at R163.13 shortly before 11:00.

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