Registered users can save articles to their personal articles list. Login here or sign up here

Vodacom adds 4.5m customers in South Africa

Also added 2.5 million in its international operations.

Vodacom Group continued to perform strongly in the 2018 financial year, adding 4.5 million customers in South Africa and 2.5 million in its international operations, it said on Monday.

The JSE-listed telecommunications group, which published its annual results for the year ended March 31 2018, said it now has more than 103 million customers across its operations in Southern Africa and East Africa.

Group revenue climbed by 6.3% to R86.4 billion despite tough economic conditions in South Africa, its largest market. Normalised growth, excluding currency translation effects, was 7.8%. Group service revenue grew 3.4% to R70.6 billion (normalised: 5.1%).

Despite a tougher economic environment in South Africa, big data-led innovations contributed to robust demand for personalised bundles.

Group earnings (before interest and tax) improved by 4.4% (2.8% normalised) to R23.1 billion. Net profit increased 18.6%, boosted by the Safaricom acquisition in Kenya and by the profit from the sale of Helios Towers Tanzania. Headline earnings per share remained constant at R9.23, impacted by shares issued to acquire the Safaricom stake.

South African revenue growth accelerated to 8.1%, boosted by strong device sales. Service revenue increased 4.9% to R54.6 billion.

The group spent R11.6 billion on its networks in 2018, R8.9 billion of which was directed to South Africa.

“Despite a tougher economic environment in South Africa, big data-led innovations contributed to robust demand for personalised bundles and a 4.9% growth in service revenue,” said group CEO Shameel Joosub in notes accompanying the full-year results.

“Strong device sales, cost optimisation measures and the effective execution of our pricing transformation programme also played a major role in the sound commercial performance in our largest market.”

He described the performance as “solid”, especially given the revenue impact from reducing out-of-bundle data prices by as much as 50% in October 2017 and early-phase investments in new revenue streams, including fibre, content and financial services.

“Over the past three years, we have reduced effective voice and data prices by 36.3% and 42.5% respectively, while maintaining revenue growth,” Joosub said.

In its international operations, both Mozambique and Lesotho performed strongly. Safaricom delivered net profit growth of 14.1%, underpinned by strong growth in data and M-Pesa revenues and a 5.1% increase in customers to 29.6 million. Safaricom contributed R1.5 billion in profit for the eight months since acquisition, after deducting the amortisation of fair valued assets and before minority interest, Vodacom said.

This is a developing story… check back soon for more.

This article was published with permission from TechCentral and the original publication can be viewed here.


To comment, you must be registered and logged in.


Don't have an account?
Sign up for FREE

Well it’s lost my contracts – they’re a monopolistic corporation that offers terrible service and rips the consumer off.

Just wondering how many active sim-cards south africans have because all of them (Cellc, mtn, telkom and vodacom)are reporting they have added more customers.
I think these numbers are not reliable because there are people like me who buy cellphones that are activated instore and as soon as we leave the store we throw away the store sim cards and put in our previous sim cards

Vodacom is a rip-off. Shop around and you will realize how much you being ripped-off by Vodacom. Their coverage is most probably the best , but if you living in a major city, it doesn’t really matter , and not worth the rip-off price.

Vodacom allows and gains from pre paid customers losing their air time by allowing add ons to take place .This happens unbeknown to pre paid customers who can ill afford to have their airtime stolen by so called wasp apps that they have not signed up for and are not aware off until you phone in and then u are not refunded.

The admin fee that the cell companies receive and benefit from allowing this to happen should be stopped.

Pre paid customers should be rewarded more satisfactorily as they pay upfront.

Vodacom by providing extra airtime or data for during the daytime as well and not just for night shift workers only or for one day only.

In other words their so called rewards programme time frames should be extended for longer periods eg a week in order for the pre paid customer to actually benefit from the issuing of these rewards in a more fulfilling way. This will definitely attract more customers and increase their bottom line.

Load All 4 Comments
End of comments.





Follow us:

Search Articles:Advanced Search
Click a Company: