Vodacom Group third quarter revenue up 6% on subs growth

4 Feb 2020

South Africa-based multinational mobile operator Vodacom Group’s consolidated revenue for its fiscal third quarter ending 31 December 2019 increased 6.6% year-on-year to ZAR23.626 billion (USD1.58 billion), supported by consolidated service revenue growth of 5.7% to ZAR18.899 billion. The African carrier added a net 484,000 mobile subscribers in its home market in October-December 2019, augmented by net gains of 1.7 million across its international operations. South Africa revenue and service revenue growth rates in the three-month period under review improved to 5.9% and 4.6% respectively, it noted, supported by increased data uptake as it continues ‘to transform pricing, as well as improved performance from its ‘Summer Campaign’. International operations, meanwhile, continued to perform well, delivering service revenue growth of 9.0%, with strong growth in data and mobile money (M-Pesa) revenues.

Shameel Joosub, Vodacom Group CEO commented: ‘Our sustained investment programme, aimed at delivering a better experience for customers in each of the countries where we operate, continues to yield results. This is reflected in the additional two million customers that we connected during the quarter, contributing to growth of 6.6% in revenue for the Vodacom Group. We now serve over 117 million customers across the Group.’ The chief executive went on to express satisfaction with: ‘the consistency in the performance of [its] International portfolio, which produced solid results on the back of strong demand for data and M-Pesa services … Our operations outside South Africa now contribute over 40% to Group service revenue. In January we had to disconnect 1.7 million customers in Tanzania, as a result of customer registration requirements, primarily due to the lack of government approved identification documents. This will have an impact on our growth in Tanzania, however we expect to reconnect many of these customers over the short to medium term once biometrically registered … Having been the first network to commercially launch 5G in Africa through Vodacom Lesotho, we expect to be able to launch 5G services in South Africa this year. This is possible thanks to a recent roaming agreement with Liquid Telecom, as 5G spectrum is largely unassigned in South Africa.’

South Africa, Vodacom Group, Vodacom South Africa