Vodacom Added 1.5 Million New Customers In South Africa

17 May 2019


Vodacom South Africa’s data revenue grew 3.9% to R24.3 billion, contributing 43.5% to service revenue. It added 1.5 million new subscribers in the year to end-March 2019, reaching 43.2 million users in South Africa.

The Vodafone owned-mobile phone company said on Monday customer revenue increased 1.3% to R47.4 billion in South Africa, supported by a growth in its customer base of 3.7%.

Vodacom, South Africa’s biggest mobile phone operator by subscribers, said prepaid customer revenue rose 2%.

The company added 1.1 million new prepaid users with ARPU declining by 6.9%, as a direct result of new additions being attracted at a lower spend. “Our efforts to reduce the one-off use of SIM in the market are showing signs of success,” the company said on Monday.

Vodacom South Africa’s data revenue grew 3.9% to R24.3 billion, contributing 43.5% to service revenue. The mobile phone operator added that the effective price per MB has reduced 23.3%, as well as a further out-of-bundle rate reduction of 50%.

It added that data bundle purchases have increased 13.1% to 866 million as more affordable data bundles with shorter validity periods are available for customers.

Overall data usage drivers were encouraging, said the company, adding that data traffic was up 35.6%.

Vodacom South Africa also reported that active smart devices on its network were up 7.6% to 19.9 million, of which 10 million are 4G devices. “Average usage on these smart devices has improved 23.2% to 966MB,” it said.

“Our capital expenditure of R9.6 billion was utilised to drive our strategy of being the leading digital telco. For the year we focused on improving the overall mobile network performance and customer experience with network modernisation and capacity upgrade initiatives,” said Vodacom.

“We delivered substantial cost savings through the introduction of Digital Technologies for smart planning, smart deployment and smart operations. Our continued investment in infrastructure resulted in over 90% coverage on 4G and 99.5% coverage on 3G.”

Source: Tech Financials