Vodacom exceeds 1 million mobile broadband users

Vodacom financial results summary

Continued revenue growth despite challenging environment

o 7.1% growth in Group service revenue to R52.0 billion
o Group traffic growth of 11.3% supported by tariff reductions
o RICA impacted negatively on South African customer numbers
o Strong international customer growth
o Pressure from economic climate and currency movements

Excellent progress in mobile broadband

o 31.9% growth in Group data revenue to R4.5 billion
o 42.3% growth in data customers in South Africa to 1.1 million
o 7.6 million active data users across the Group

Margins expanded through cost containment steps

o Group EBITDA margin expanded from 32.8% to 33.8%
o 14.5% increase in EBITDA from South African business
o R0.5 billion annual cost efficiency programme launched
o Procurement collaboration with Vodafone yields savings

Strong growth in HEPS

o HEPS increased 22.3% to 510 cents per share

Increased shareholder returns driven by robust free cash flow

o 55.2% growth in operating free cash flow to R13.5 billion
o Group capex of R6.6 billion, 11.3% of revenue
o Strong financial position – net debt to EBITDA of 0.6 times
o Final dividend of 175 cents per share
 
Ag, it's just users that use 2MB per month for checking the traffic before they leave work. Hardly a broadband user.
 
Just love that news article headline: "Vodacom breaks 1 million mobile broadband users" :D
 
Poor sods. Using internet through your cell phone is a painful experience. It would be faster to send the info by courier. And the courier would be cheaper as well.
 
Pieter Uys said:
Customers in all of our markets have felt the effects of still fragile economic conditions and we have responded by increasing the value delivered to customers, made possible through cost containment measures taken across the Group. We reduced prices in all markets, expanded our data business and delivered strong growth in free cash flow.
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LOL, please point me to the noticeable price reduction of mobile broadband!

Pieter Uys said:
Our strengthened financial position supports an increase in our dividend payout to shareholders.
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Ah, yes customer #1, the shareholders.
 
Garyvdh said:
Poor sods. Using internet through your cell phone is a painful experience. It would be faster to send the info by courier. And the courier would be cheaper as well.
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I tend to disagree here. Most of the time my HSDPA 7.2 card well outperforms my 4mb ADSL in speed (especially with all the intl downtime lately). Obviously costs are still alot more, but its about mobility.
 
50% or more of those are probably mxit users using cheap 2G phones that can hardly top 200kbps.

In the past years I have been a big supporter of mobile broadband and not having anything to do with Telkom.
Since the uncapped offerings on ADSL started to emerge I have turned my back on mobile broadband and their failure to adapt pricing on data packages.
 
ToAsTeD said:
I tend to disagree here. Most of the time my HSDPA 7.2 card well outperforms my 4mb ADSL in speed (especially with all the intl downtime lately). Obviously costs are still alot more, but its about mobility.
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Of late my office 3G connection has been behaving quite well, except when the weather turns clouding and wet, seems to affect 3G pretty badly... today the sun is shining and it's working 100%, latency as always not too hot... to local server... avr. 124ms, worst 286ms, best 100ms... and no packet loss... wow... but yes they costs are still exorbitant when compared to other options in the market...

BGE
 
ToAsTeD said:
I tend to disagree here. Most of the time my HSDPA 7.2 card well outperforms my 4mb ADSL in speed (especially with all the intl downtime lately). Obviously costs are still alot more, but its about mobility.
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in how many different places have you tried it?
 
I have used 7.2mbps Vodacom around Stellenbosch and it really does go upto 700kb/s when you download. But the price is just too insane, the modem belongs to my dad and he does not even miss the speed now that he is on uncapped ADSL 384.
 
Capital expenditure of R4 573 million was largely allocated to adding a further 462 3G base stations, increasing base station capability to 14.4 Mbps across the network, completing the metro fibre rings and upgrading the radio network.
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Tnx VC, another 4.5 billion well spent
 
At the end of the chain is the mobile users who have not even experienced any price reductions with regard to "mobile SKINNYband"
 
The VMC connect software is also a pain in the neck. And browsing on your phone is an exercise in frustration. I still maintain that this technology is nowhere near mature enough to be classed as a business product let alone as "broadband".
 
5 Basic Things to remember..............

1. Never educate VodaCom about their weakness's

2. Don't Support VodaCom Wireless Data - Use anything else that is available preferably - PREPAID

3. Spread the word about other Choices available in the market to Friends & Family - Like
Telkom-Mobile and Cell-C's new offering coming soon.

4. Always Vote with your money - It speaks 10 times more louder than anything else.

5. Always look for Value for your money after all it's your money.

Only we the consumers can make the market competitive if we spread the Internet PIE.

We have 7 Choices - That's alot for us in SA to create a price war.

1. Telkom - ADSL
2. NeoTel
3. Iburst

4. Vodacom
5. MTN
6. Cell-C
7. Telkom-Mobile



DXL - Team
 
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