Vodacom South Africa – Customers and data usage grow

Vodacom has released its results for the year ended 31 March 2019, which show growth in its South African operations.

The results stated that customer numbers grew by 3.7% to 43.2 million. This equalled net additions of 1.5 million users.

Looking at contract and prepaid users:

  • Contract customer increased by 8.9% to 5.8 million. This saw contract customer revenue increase by 0.6%.
  • Prepaid customer net additions were 1.1 million. Prepaid customer revenue increased by 2.0%.

“This helped Vodacom achieve a customer revenue increase of 1.3%, to R47.4 billion,” it said.

Data revenue

Following Vodacom’s “data shocker” in its December 2018 results – its first-ever decline in mobile data revenue in South Africa – the company has registered data growth of only 3.9% to R24.3 billion. This contributed 43.5% to service revenue.

“The effective price per MB has reduced 23.3% following the implementation of the EUSSC regulations in March, as well as a further out-of-bundle rate reduction of 50%,” said Vodacom.

Data traffic was up 35.6%, however, and active smart devices on the network were up 7.6% to 19.9 million – of which 10 million were 4G devices.

“Average usage on these smart devices has improved 23.2% to 966MB.”

Enterprise

Vodacom’s financial services and enterprise segments also delivered growth during the period, up 67.1% to R1.6 billion in revenue and up 4.8% to R14.7 billion in revenue, respectively.

“Our fixed-line service revenue increased 24.7%, underpinned by solid growth in connectivity, cloud and hosting and IPVPN revenues. IoT connections continue to gain momentum with a 24.4% growth in customers to 4.5 million.”

Vodacom added that it has almost doubled its fibre-to-the-home/business connections in the year.

Expenses

A big expense for Vodacom during the period was its capital expenditure requirements, which reached R9.6 billion.

“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 spent R2 billion on IT during the year. Our focus is to become smarter and more agile in delivering products to our customers.”

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Vodacom South Africa – Customers and data usage grow