Vodacom has announced revenue growth of 4,2% to R21,5-billion for the quarter ended 30 June, with service revenue up 3,9% to R17,4-billion.
The group added 608 000 customers in South Africa in the quarter, with 522 000 added in prepaid and an 8,9% growth in the contract customer base. International operations grew customers by 5,3% or 560 000 customers.
Vodacom saw strong international service revenue growth of 19,6% to R5,1-billion, supported by continued success in M-Pesa and data.
Over the period, group data customers increased to 38,9-million adding 1,3-million in the quarter.
M-Pesa revenue increased 42,7% to R905-million, representing 17,7% of international service revenue.
South Africa service revenue declined 1,2% to R12,6-billion, negatively impacted by the proactive reduction in out-of-bundle data rates, data usage regulations and the transition between national roaming partners.
Shameel Joosub, group CEO of Vodacom, comments: “Growth from our international portfolio offset the anticipated slower performance in South Africa, which was impacted by new data usage
regulations, significant data price cuts and a subdued economy weighing on consumer spend.
“Revenue and service revenue at a group level grew by 4,2% and 3,9% respectively. Excluding Safaricom, we added 1,2-million customers in the three-month period, serving 79-million customers across the group, having added 2,4-million customers in total to the Vodacom network over the past year.
Despite the impact of cyclones Idai and Kenneth in Mozambique, international service revenue increased by 19,6%, largely driven by a 42,7% increase in M-Pesa revenue and data demand,” Joosub adds. “M-Pesa revenue of R905-million accounted for 17,7% of international service revenue, boosted by an overall improved trend in each of our international markets and Tanzania in particular.”
In South Africa, service revenue was negatively impacted by the further substantial reduction in out-of-bundle tariffs announced in March as part of Vodacom’s sustained pricing transformation strategy to bring down the prices of our data services, Joosub says.
“The impact from three months of ICASA’s data usage regulations, the transition between national roaming partners and the tough retail operating environment, were other contributors to the 1,2% decline in service revenue in South Africa.”