Vodacom’s latest financial results – the details

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.”

Now read: Vodacom narrowband Internet-of-Things network launching in 2017

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Vodacom’s latest financial results – the details