Vodacom Group’s service revenue grew by 3,9% in the quarter ended 31 December 2020, driven by strong growth in South Africa and improved growth from international operations.
Group revenue growth of 6,4% in the quarter was ahead of group service revenue growth and supported by equipment and non-service revenue in South Africa.
South Africa’s service revenue was up 5,4%, reflecting strong demand for new services and connectivity, while international service revenue declined by 1,4%, with M-Pesa supporting a notable sequential improvement in the year-on-year decline of normalised service revenue.
Shameel Joosub, Vodacom Group CEO, comments: “In the wake of a second wave of Covid-19 infections across most of the world, Vodacom Group remains committed to assisting governments curb the spread of the pandemic whilst at the same time focusing on the economic recovery in each of the markets where we operate through the execution of a six-point plan.
“This plan includes expanding network coverage and resilience, accelerating support to governments, enhancing digital accessibility and digital adoption, supporting the strategies of our customers as they adapt to the ‘new normal’, and promoting financial inclusion.
“In South Africa, 23-million customers took advantage of discounts and the greater value offered through a highly successful summer ‘ShakeOff 2020’ campaign and our recently launched VodaBucks loyalty programme with an additional 1,45-million customers connecting to our network during the quarter.”
Supported by a significant increase in demand for its Airtime Advance product and a healthy increase in insurance policies, Vodacom’s Financial Services business remains a very strong performer, says Joosub, having increased revenue by 24,3%, as the business continues to scale.
Group service revenue increased 4,2% on a normalised basis, supported by ongoing investment into an ecosystem of connectivity, financial and digital services. In South Africa, service revenue grew 5,4%, with both Consumer and Vodacom Business segments contributing to growth, despite material data price reductions on 1 April 2020.
Normalised growth across International operations showed a marked improvement in the quarter.
Revenues from M-Pesa increased 10,1%, largely the result of a 7,7% increase in customers, with almost 16-million people – or just under half Vodacom
S International customer base – now making use of the M-Pesa platform.
Including Safaricom, monthly M-Pesa transactions were $24,2-billion, up 57,8% year-on-year.
Participating in the Independent Communications Authority of South Africa’s (ICASA’s) High Demand Spectrum auction is a key strategic priority for the Group in the quarter ahead, Joosub says.
“We see the assignment of spectrum as instrumental in extending coverage, improving quality of service and lowering the cost to communicate in South Africa. Any further delays to this process will likely have a negative impact on consumers.”
Vodacom invested R3,4-billion in its network across the Group in the quarter, including the expansion of 4G coverage, speeds and capacity. “In South Africa alone, we invested R2,7-billion to support data demand and shifts in customer behaviour patterns with a need to work, entertain and educate from home.”