Vodacom Q2 revenues increase 8.1% to ZAR15.6 billion

22 Jul 2011

South Africa-based Vodacom Group has reported consolidated revenues of ZAR15.6 billion (USD2.3 billion) for the three months ended 30 June 2011. This figure represents an increase of 8.1% year-on-year. Vodacom’s domestic unit, Vodacom South Africa accounted for ZAR13.5 billion in sales (up 7.7% year-on-year), with the firm’s international operations accounting for ZAR2.1 billion (up 10.2% year-on-year). The company has yet to release figures for EBITDA or net profit. Of Vodacom South Africa’s revenues, mobile voice traffic was responsible for the lion’s share of the takings, generating ZAR7.0 billion, whilst mobile interconnection fees contributed ZAR1.5 billion, mobile data ZAR1.9 billion and mobile messaging ZAR743 million. Data exhibited the largest increase year-on-year, growing 35.4%.

In operational terms, Vodacom South Africa remains the firm’s largest unit by subscribers, with 27.7 million customers reported at the end of the second quarter. Elsewhere, Vodacom units in Tanzania, Democratic Republic of Congo, Mozambique and Lesotho all increased their subscriber bases in the three months ended 30 June. Tanzania grew its subscriber base to 9.3 million subscribers, whilst Mozambique weighed in with 3.3 million customers and Democratic Republic of Congo contributed 4.2 million subscribers. Finally, Lesotho grew its subscriber base to 904,000. Vodacom Group ended the quarter with a consolidated wireless subscriber base of 45.4 million, representing quarterly net additions of around 1.9 million customers.

Vodacom CEO Pieter Uys commented: ‘This quarter started on a high note with our team delivering a really well-executed brand refresh. Internally we used the opportunity to signal a new direction and culture, involving all our employees in how we approach our vision of making every customer smile. The positive sentiment from the refresh was mirrored by good performances from both the South African and international operations. Strong data growth was again a major feature with group data revenue increasing 37.6% and active data customers increasing 43.3% to 10.9 million. This helped support overall group revenue growth of 8.1%. Not everything went our way this quarter. We unfortunately experienced some outages in our South African network. While the financial impact was minimal, the negative impact on the customer experience was not acceptable. We have subsequently installed more fibre capacity and upgraded certain software to avoid future disruptions. Our number one priority over the coming months is to ensure that our customers get the best possible network experience’.