Vodacom Group reported that revenue for the quarter ended 30 June 2023 increased 36,9% to R35,7-billion, positively impacted by the acquisition of Vodafone Egypt and rand depreciation against our basket of international currencies.
Group service revenue was up 43,8%, or 9,8% excluding Vodafone Egypt. South Africa service revenue grew 3,9%, underpinned by the contract segment, fixed and financial services. International service revenue increased 23,8%, driven by data revenue growth and a weaker rand.
Vodafone Egypt grew service revenue 27,6% in local currency, as financial services revenue more than doubled.
Group service revenue growth including Vodafone Egypt on a pro forma basis was 9%, at the higher-end of our medium-term target.
Financial services revenue increased 46,2% to R3-billion, with $1-billion per day transacted on our mobile money platforms.
Shameel Joosub, Vodacom Group CEO, comments: “A number of encouraging trends were evident in the Vodacom Group’s first quarter performance, despite the ongoing uncertainty impacting global markets and economies. These include strong service revenue growth in local currency by Vodafone Egypt, Vodacom South Africa’s encouraging data and fixed performance, strong financial services growth and the expansion of M-Pesa’s ecosystem into new service offerings, including merchants.
“While the higher cost of living and elevated inflation remains a major factor in most of the markets where we operate, Vodacom continues to deliver on its purpose-led promise of connecting people to a better future, including seeking ways to provide even greater value to customers,” he says. “For instance, our substantial investments to enhance the network experience for customers across our markets has resulted in a number of accolades.”
Joosub says Vodacom has responded to South Africa’s power crisis with increased investment in power resilience and meaningful engagement with stakeholders. “We welcome the government’s block exemptions for energy users and suppliers, which enables more efficient procurement and use of backup energy solutions. We were also encouraged by Eskom’s recent publication of a ‘Virtual Wheeling Platform’ paper that builds on our pioneering project with the energy utility to drive private sector investment into new energy generation. We are confident that our virtual wheeling agreement with Eskom will be signed off in the near term and that this will have a positive impact on the country’s power grid and renewable energy mix.”
From a mergers and acquisitions perspective, Vodacom awaits regulatory approval for its proposed acquisition of a joint venture stake of up to 40% in MAZIV. “This will accelerate fibre reach in South Africa, fostering economic development and helping bridge South Africa’s digital divide,” Joosub says. “Our recently launched Ethiopian business, Safaricom Ethiopia, has made good progress since its commercial launch in October 2022, already reaching 2,7-million customers and is set to launch M-Pesa services in the second quarter.
“Looking ahead, we are fully cognisant of the financial constraints on customers caused by global economic uncertainty and increased inflation,” he adds. “We remain committed to delivering innovations that enhance the value we deliver to customers and helping to alleviate cost of living pressures.”