Vodacom reports rising Q3 revenue on surging data use and subs gains

16 Feb 2016

South Africa’s Vodacom Group says consolidated revenues for its fiscal third quarter ending 31 December 2015 climbed 8.7% year-on-year to ZAR21.741 billion (USD1.38 billion), as data revenue surged 27.5% to ZAR520 million to represent 32.0% of overall service revenues (ZAR17.224 billion). The carrier – which has operations in South Africa, Tanzania, the Democratic Republic of the Congo (DRC), Lesotho and Mozambique – closed out last year with more than 65.2 million subscribers, up 6.8% on an annualised basis, noting too that ‘active’ data customers increased 14.5% over the twelve-month period to more than 30.3 million. Further, the carrier said that service revenue from its international operations rose 15.2% y-o-y to ZAR4.581 billion and these now account for 26.6% of Group sales.

Commenting on the results, Shameel Joosub, Vodacom Group CEO, said: ‘We successfully executed on our strategy and achieved another quarter of improving revenue trends. The two biggest highlights in the quarter are the accelerated service revenue growth of 7.2% in South Africa and the 6.8% increase in the Group customer base to 65.2 million. In South Africa, the take-up of our personalised offer ‘Just for You’ was excellent and contributed to the 15.9% reduction in effective voice rates. The International segment delivered robust service revenue growth of 15.2%. Our performance in the quarter reflects the positive impact from our substantial network investment of ZAR9.5 billion across all our operations in the nine months. We have expanded our network coverage and increased data speeds to secure network leadership … We expect revenue growth to taper slightly into our last quarter of the financial year due to a stronger prior year comparative and a weaker outlook for the consumer in South Africa due to the drought and weaker exchange rate.’

Congo, Dem. Rep., Lesotho, Mozambique, South Africa, Tanzania, Vodacom Congo (DRC), Vodacom Group, Vodacom Lesotho, Vodacom Mozambique, Vodacom South Africa, Vodacom Tanzania