Vodacom grows subscribers and data revenue

Vodacom has released its trading update for the quarter ended 31 December 2019, showing an increase in subscribers and data revenue in South Africa.

This boost was attributed to the mobile operator’s Summer campaign as well as the company’s data transformation strategy.

“A highly successful Summer campaign which delivered 334 million free rewards to 17 million customers, contributed to an uplift in activity across our customer base,” said Vodacom CEO Shameel Joosub.

“This increase in data customers and usage is evidence of our success in transforming data pricing in South Africa.”

Joosub added that the company’s ongoing price transformation strategy has seen it cut out-of-bundle tariffs and decrease bundle prices, resulting in a 50% decline in data prices since March 2016.

“Our Shake! Up Summer campaign has done very well with over 17 million engaged customers and 406 million shakes in the quarter, resulting in an overall uplift in activity and revenue.”

Customer and revenue boost

Vodacom’s revenue in South Africa increased by 5.9% and the operator added 484,000 customers in South Africa compared to the same period last year.

The operator now has a total of 44.3 million customers, with 38.3 million on prepaid and 6 million on contract.

“Our data pricing transformation strategy of giving more value to customers is delivering results, with data customers increasing 12.5% to 22.9 million and overall data usage increasing by 63.2%,” Vodacom said.

“Data bundles sold increased 20.0% to 251 million, raising our unique bundle data users to 14 million, an increase of 17.8%”

The company saw a decline in contract customer ARPU of 3.6% stating that this was supported by a 20.3% increase in contract data bundles sold.

Vodacom also said that its digital services were growing rapidly, with more than 2 million customers now engaged with its Video Play streaming service.

Now read: Why Vodacom and MTN are not cutting jobs

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Vodacom grows subscribers and data revenue