Vodacom targets fixed-line markets
Vodacom Group has delivered another stellar performance, with profit from operations rising 15 percent to R12.5 billion in the year to March.
The number of customers rose 12.7 percent to 34 million. Vodacom, which is co-owned by UK-based cellular operator Vodafone and fixed-line provider Telkom, also operates in Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo. Revenue rose 17 percent to R48.2 billion.
"Revenue was above expectations," said Rajay Ambekar, an analyst at Cadiz African Harvest Asset Management.
Other numbers were in line with his expectations, said Ambekar. Earnings before interest, tax and depreciation increased 15.7 percent to R16.5 billion.
The country’s biggest cellular operator said that further details would be released at the company’s annual results presentation next month.
Although Vodacom is the biggest cellular operator in South Africa, the company still lags rival MTN, which operates in 21 markets in the African continent and the Middle East.
MTN is also in discussions with mobile operator Reliance Communications to expand into the lucrative Indian market.
Vodacom is still looking for opportunities in Africa. It was recently shortlisted for a stake in Ghana Telecom, but the deal had been restarted since the bids did not meet the Ghanaian government’s expectations.
The Ghanaian government was talking to France Telecom, Portugal Telecom, Vodacom, Vodafone and two other operators, Benjamin Aggrey Ntim, Ghana’s communications minister, said earlier this month.
But Vodacom spokesperson Dot Field said the company was no longer in the running for a stake in Ghana Telecom.
Vodacom plans infrastructure expenditure of R2.5 billion in the next five years to grow into fixed-line markets and offer services to blue-chip companies.
It has established a new unit, Vodacom Business, to look for business opportunities in the lucrative corporate and small medium enterprises market.
Vodacom Business will offer broadband internet, data back-up, video, and cellphone and fixed-line voice.
Vodacom Business is also building a fibreoptic network in major cities. The unit will lead to the company taking on its 50 percent shareholder, Telkom.
Last month Vodacom sealed its long-awaited R7.5 billion black empowerment transaction by selling shares to Thebe Investment and Royal Bafokeng Holdings. It will also allocate the shares to employees, its business partners and the public.
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