Vodacom Group reports solid Q2 growth
Pan-African cellco Vodacom has announced revenues of ZAR14.4 billion (USD1.9 billion) for the three months ended 30 June 2010. This figure represents a 0.7% rise, from ZAR14.3 billion recorded in 2Q2009. Of this figure ZAR12.56 billion was generated by the group’s South African interests, whilst ZAR1.92 billion came from its international units. Whilst international revenues fell by 14.5%, domestic revenue increased 3.8%.
One of the key factors behind the rise in turnover was a 15.7% increase in its South African contract customer base from 4.04 million to 4.67 million - which compensated for a dramatic disconnection policy-related drop in pre-paid subscribers. Vodacom made progress in terms of mobile broadband, with group data revenue increasing by 43.2% to ZAR350 million. Although South African operations contributed 61.4% of Vodacom’s subscriber base at the end of June, with 23.16 million subscribers, the cellco’s international interests also bore fruit, adding almost a million new customers in Q2, to take its total group customer base to 14.6 million, an increase of 15.8% year-on-year. Most of the new additions (739,000) came from Tanzania, where the market responded well to newly introduced tariff plans.
CEO Pieter Uys commented: ‘This was a positive start to our financial year with overall group service revenue increasing 3.1% in constant currency. Excluding the impact of mobile termination rates (MTRs), South Africa’s service revenue growth of 8.2% reflected robust growth in data revenue and gains on the voice side. Lower MTRs had a negative impact of approximately ZAR393 million on revenue in the quarter. We are pleased to see that the actions we have taken in our key international markets are slowly paying off.’