Vodacom has announced that group revenue for the year was up 4,5%. Excluding the sale of Gateway Carrier Services and foreign currency impact, revenue was up 5,3% and service revenue was up 2,9%.
Group data revenue was up 22,2%, and active data customers increased 22,5% to 18,5-million. International operations maintained strong momentum; service revenue was up 22,3% supported by customer growth and increased adoption of data and financial services.
The group’s EBITDA margin has expanded 2,1 percentage points to 36,1% and EBITDA is up 10,9% to R25 253-million.
Group capital expenditure was up 9,2% to R9 456-million, supporting expanded 3G coverage and network renewal projects.
Group operating free cash flow has grown 7,2%, despite significant network expansion and investment in working capital to finance smartphones and tablets.
Headline earnings per share (HEPS) have increased by 23%, as a result of strong operating profit growth and secondary tax on companies (STC) falling away.
Final dividend per share stood at 430 cents; while total dividends per share for the year stood at 785 cents, up 10,6%.
Shameel Joosub, Vodacom Group CEO comments: “The Group delivered a solid performance this year with our active customer base growing to 51,7-million and 10,9% increase in EBITDA to R25-billion. This was achieved in the face of tough competition across all our markets.
“The outstanding features of the years performance were sustained strong growth in data services of 22,2%, with increased smartphone adoption driving demand, and good growth in service revenue in our International markets of 22,3%.
“Over the past five years, Vodacom has spent R38-billion on network investment, R28-billion of which was in South Africa. In just the last year alone the company spent R9,5-billion across the Group and R7-billion in South Africa.
“Crucially, it has also enabled us to operate more efficiently and expand our margins despite comprehensive price reductions. We also demonstrated good cost discipline and built on scale benefits across the Group, with the overall result of increased margins,” says Joosub.
South African revenue increased 2,9% to R58 607-million driven by the 24,6% growth in equipment revenue from smartphone and tablet sales. Service revenue declined by 0,4% to R48 234-million, with the growth in data services and the success of our new prepaid offers offset by lower out of bundle usage, impact of less calling card customers on the network, a weaker performance from the independent service providers and continued cuts in mobile termination rates (MTRs).
Excluding the impact of MTRs, service revenue increased 2,4%. Adjusting for the impact of MTRs and leap year/Easter holidays, fourth quarter service revenue growth was stable in comparison with the third quarter.
Active customers were up 4,9% to 30,3-million, increasing by 1,4-million customers in the year. The contract customer base expanded by 5,6% to 5,9-million mainly from mobile broadband and telemetry customer additions.
The prepaid customer base increased 4,7% to 24,4-million and ARPU declined 16,5% to R76. During the last quarter the rate of ARPU decline slowed following the actions taken to reduce the volumes of unprofitable, low usage calling card customers.
Data revenue increased 16,3% to R8 882-million, contributing 18,4% to service revenue compared to 15,8% a year ago. Fourth quarter data revenue growth was above 20% due to a focus on accelerating take-up of data services with new promotions.
Data traffic grew 39,5% which more than offset a 17,9% reduction in the average effective price per megabyte (Mb). Growth was driven by higher penetration of smartphones and increased mobile internet usage. The company has made a considerable investment in working capital to drive affordability of smartphones and tablets through handset financing, with an additional 1,2-million smartphones now active on our network.
This brought the total number of smartphones to 6-million and average monthly usage increased 43,4% to 139Mb.
Vodacom now has 14,4-million active data customers, up 18,1%.
EBITDA growth of 5,4% outpaced revenue growth and the EBITDA margin expanded almost one percentage point to 38,2%.
Capital expenditure during the year was R6 967-million (11,9% of revenue). The majority of the capital expenditure was concentrated on transmission, the radio access network (RAN) renewal project and adding new 3G base stations to the network. Vodacom now have over 6 000 sites connected with high speed transmission.
Vodacom added 904 new 3G base stations and 467 new 2G base stations in the year, bringing the total number of 3G base stations to 6 167, and 2G base stations to 9 348. In October 2012, they launched South Africas first LTE network, with just over 600 sites operational at 31 March 2013.
International segments service revenue grew 11%. Excluding the sale of Gateway Carrier Services and the impact of movements in foreign currency, service revenue increased 22,3%, driven by a larger customer base and increased take-up of data services. The International operations now contribute 19% to Group service revenue compared to 17,4% a year ago.
Data revenue grew 106,9% supported by 40,9% growth in active data customers to 4,1-million, 19,3% of the customer base. 3G services have been launched in DRC and lower priced daily and weekly data bundles have been introduced in all our operations, to stimulate further demand.
Mobile financial services also continue to grow, with active M-Pesa customers up 57,5% to 4,9-million. With 51,6% of Tanzanias customer base actively using M-Pesa, the service now contributes 14,1% to Tanzanias service revenue, up from 8,4% a year ago. Building on this success, we launched M-Pesa in DRC in the last quarter.
The International operations have reached a turning point in terms of profitability, with EBITDA up 87,5% (67,8%), as our operations continue to realise better scale benefits combined with a focus on cost containment. EBITDA margin improved almost ten%age points to 23,6% (2012: 14%) and the total contribution to Group EBITDA increased to 10,8% (2012: 6,4%).
Capital investment increased substantially, up 70,6% to R2 864-million (24,7% of revenue) due to continued expansion of voice and data network coverage and capacity. RAN renewal projects are underway across all our operations.
The Group sold its investments, supplier agreements and assets in Gateway Carrier Services in August 2012, which formed part of the Groups International reportable segment, for US$35-million. These results include service revenue of US$155-million (2012: US$386-million) and EBITDA loss of US$3-million (2012: US$3-million) relating to this operation.
Vodacom continues to invest in specific growth opportunities, chiefly in extending the immense benefits of high speed data access to more customers, growing our enterprise offering and leveraging the success of services such as M-Pesa.
Underpinning the company’s strategic priorities are significant investments in networks, the fundamental enablers of a differentiated customer experience, and in driving operating efficiencies.
Group data revenue was up 22,2%, and active data customers increased 22,5% to 18,5-million. International operations maintained strong momentum; service revenue was up 22,3% supported by customer growth and increased adoption of data and financial services.
The group’s EBITDA margin has expanded 2,1 percentage points to 36,1% and EBITDA is up 10,9% to R25 253-million.
Group capital expenditure was up 9,2% to R9 456-million, supporting expanded 3G coverage and network renewal projects.
Group operating free cash flow has grown 7,2%, despite significant network expansion and investment in working capital to finance smartphones and tablets.
Headline earnings per share (HEPS) have increased by 23%, as a result of strong operating profit growth and secondary tax on companies (STC) falling away.
Final dividend per share stood at 430 cents; while total dividends per share for the year stood at 785 cents, up 10,6%.
Shameel Joosub, Vodacom Group CEO comments: “The Group delivered a solid performance this year with our active customer base growing to 51,7-million and 10,9% increase in EBITDA to R25-billion. This was achieved in the face of tough competition across all our markets.
“The outstanding features of the years performance were sustained strong growth in data services of 22,2%, with increased smartphone adoption driving demand, and good growth in service revenue in our International markets of 22,3%.
“Over the past five years, Vodacom has spent R38-billion on network investment, R28-billion of which was in South Africa. In just the last year alone the company spent R9,5-billion across the Group and R7-billion in South Africa.
“Crucially, it has also enabled us to operate more efficiently and expand our margins despite comprehensive price reductions. We also demonstrated good cost discipline and built on scale benefits across the Group, with the overall result of increased margins,” says Joosub.
South African revenue increased 2,9% to R58 607-million driven by the 24,6% growth in equipment revenue from smartphone and tablet sales. Service revenue declined by 0,4% to R48 234-million, with the growth in data services and the success of our new prepaid offers offset by lower out of bundle usage, impact of less calling card customers on the network, a weaker performance from the independent service providers and continued cuts in mobile termination rates (MTRs).
Excluding the impact of MTRs, service revenue increased 2,4%. Adjusting for the impact of MTRs and leap year/Easter holidays, fourth quarter service revenue growth was stable in comparison with the third quarter.
Active customers were up 4,9% to 30,3-million, increasing by 1,4-million customers in the year. The contract customer base expanded by 5,6% to 5,9-million mainly from mobile broadband and telemetry customer additions.
The prepaid customer base increased 4,7% to 24,4-million and ARPU declined 16,5% to R76. During the last quarter the rate of ARPU decline slowed following the actions taken to reduce the volumes of unprofitable, low usage calling card customers.
Data revenue increased 16,3% to R8 882-million, contributing 18,4% to service revenue compared to 15,8% a year ago. Fourth quarter data revenue growth was above 20% due to a focus on accelerating take-up of data services with new promotions.
Data traffic grew 39,5% which more than offset a 17,9% reduction in the average effective price per megabyte (Mb). Growth was driven by higher penetration of smartphones and increased mobile internet usage. The company has made a considerable investment in working capital to drive affordability of smartphones and tablets through handset financing, with an additional 1,2-million smartphones now active on our network.
This brought the total number of smartphones to 6-million and average monthly usage increased 43,4% to 139Mb.
Vodacom now has 14,4-million active data customers, up 18,1%.
EBITDA growth of 5,4% outpaced revenue growth and the EBITDA margin expanded almost one percentage point to 38,2%.
Capital expenditure during the year was R6 967-million (11,9% of revenue). The majority of the capital expenditure was concentrated on transmission, the radio access network (RAN) renewal project and adding new 3G base stations to the network. Vodacom now have over 6 000 sites connected with high speed transmission.
Vodacom added 904 new 3G base stations and 467 new 2G base stations in the year, bringing the total number of 3G base stations to 6 167, and 2G base stations to 9 348. In October 2012, they launched South Africas first LTE network, with just over 600 sites operational at 31 March 2013.
International segments service revenue grew 11%. Excluding the sale of Gateway Carrier Services and the impact of movements in foreign currency, service revenue increased 22,3%, driven by a larger customer base and increased take-up of data services. The International operations now contribute 19% to Group service revenue compared to 17,4% a year ago.
Data revenue grew 106,9% supported by 40,9% growth in active data customers to 4,1-million, 19,3% of the customer base. 3G services have been launched in DRC and lower priced daily and weekly data bundles have been introduced in all our operations, to stimulate further demand.
Mobile financial services also continue to grow, with active M-Pesa customers up 57,5% to 4,9-million. With 51,6% of Tanzanias customer base actively using M-Pesa, the service now contributes 14,1% to Tanzanias service revenue, up from 8,4% a year ago. Building on this success, we launched M-Pesa in DRC in the last quarter.
The International operations have reached a turning point in terms of profitability, with EBITDA up 87,5% (67,8%), as our operations continue to realise better scale benefits combined with a focus on cost containment. EBITDA margin improved almost ten%age points to 23,6% (2012: 14%) and the total contribution to Group EBITDA increased to 10,8% (2012: 6,4%).
Capital investment increased substantially, up 70,6% to R2 864-million (24,7% of revenue) due to continued expansion of voice and data network coverage and capacity. RAN renewal projects are underway across all our operations.
The Group sold its investments, supplier agreements and assets in Gateway Carrier Services in August 2012, which formed part of the Groups International reportable segment, for US$35-million. These results include service revenue of US$155-million (2012: US$386-million) and EBITDA loss of US$3-million (2012: US$3-million) relating to this operation.
Vodacom continues to invest in specific growth opportunities, chiefly in extending the immense benefits of high speed data access to more customers, growing our enterprise offering and leveraging the success of services such as M-Pesa.
Underpinning the company’s strategic priorities are significant investments in networks, the fundamental enablers of a differentiated customer experience, and in driving operating efficiencies.