Vodacom’s revenue up by 4.3% to ZAR18.3bn in 2Q14
South Africa-based Vodacom Group, part of the Vodafone Group, has published its financial results for the three months ended 30 June 2014, reporting an 4.3% year-on-year increase in revenues, to ZAR18.287 billion (USD1.739 billion), up from ZAR17.536 billion in the corresponding period of 2013. Service revenues from international operations reached ZAR3.493 billion, up by 17.3% y-o-y on a reported basis, while South African operations generated a total of ZAR11.442 billion, representing a 2.0% decrease on the ZAR11.678 billion reported in 2Q13, mainly due to cuts in mobile termination rates (MTRs).
The group added eight million net new users over the past twelve months to take its total subscriber base to 59.602 million, which includes 32.516 million in its domestic market – up 11% year-on-year – and 27.086 million across Tanzania (10.638 million), Democratic Republic of Congo (DRC, 10.502 million), Mozambique (4.604 million) and Lesotho (1.342 million). Further, Vodacom said that it has increased the number of Long Term Evolution (LTE) sites in its domestic market to 1,389 (from 916 in end-March 2014), while 3G-enabled sites reached a total of 7,541 in 2Q14; Vodacom pointed out that 74.5% of the base transceiver stations (BTS) are connected to its ‘self-provided high capacity transmission network’ and that it expects to complete a Radio Access Network (RAN) upgrade programme in the next quarter (Q3 2014).
Shameel Joosub, Vodacom Group CEO, added: ‘Data and the International businesses have once again been the largest contributors to growth, and the entire business is seeing the benefit of our sustained investment programme. In South Africa we executed well operationally and grew our customer base by 11.0%, but revenue was impacted by the dramatic decrease in MTRs. We continued with our price transformation strategy, bringing down the overall effective price per minute by 25.3% to ZAR0.68 and driving an increase in outgoing voice traffic of 26.1%. The elasticity effect was even more notable on data, with a 30.3% reduction in the average effective price per megabyte more than offset by a 70.1% increase in data traffic. The International businesses performed well, with service revenue increasing 17.3% and the customer base increasing 21.7%. The contribution of the International businesses to group service revenue increased to 23.4%.’