Vodacom has released its interim results for the six months ended 30 September 2016, which show a big increase in data revenue for the company.
Vodacom CEO Shameel Joosub said their strategy of maintaining a network advantage and delivering value for money continues to reap rewards.
This is despite a low-growth economic environment in South Africa, he said.
The highlights of the results were:
- Group service revenue up 5.3% and Group revenue up 4.1%.
- South Africa service revenue increased 5.6%.
- International operations’ service revenue grew 5.4%.
- Group data revenue up 18.7%.
- Group EBITDA grew 4.1%, to R15,278 million.
- Group capital expenditure of R5,714 million, focussed on improved 3G and 4G coverage.
- Headline earnings per share flat at 440 cents per share.
- Interim dividend per share of 395 cents.
Vodacom said the revenue growth could be attributed to a 2.3-million increase in active customers since March 2016 – mostly in South Africa.
It added that 9.3 million customers are now buying more than 223 million data bundles.
“As a result of our efforts to make data more affordable, the effective price per megabyte has declined by 13% in the period or 61% over the past four years.”
“Voice price per minute also declined by 14.3%, or 52% over the past four years.”
Vodacom’s M-Pesa service also performed well, achieving growth of 36.8%.
“There are now 10.9 million customers using M-Pesa in our international operations.”
The company said it has also spent a substantial amount on its network, investing R5.7 billion in the first half of the year.
“Over the last three years, across all our operations the total investment was a massive R37 billion.”