Vodacom Group, today, 5 February 2014, announced the quarterly update for the period ended 31 December 2013.
According to the report, group revenue increased by 10.5% (7.9%) to ZAR20 219 million.
In addition,group service revenue increased by 6.4% to ZAR16 248, up 3.4% on a normalised basis and in line with our guidance.
Group data revenue increased 40.7% to ZAR3 611 million, now 22.2% of service revenue.
“We continue to gain ground commercially with a 12.3% increase in Group customers to 56.0 million and 3.4% underlying growth in Group service revenue driven by data revenue growth of 40.7%,” comments Shameel Joosub, Vodacom Group CEO.
“This quarter highlights once again that our strategy of sustained network investment is key to allow us to grow our overall business while still driving down the cost to communicate.”
“In South Africa as an example, we have continued with our pricing transformation to drive the adoption of price plans that offer more value to customers, which has reduced the prepaid average price per minute by 25.3% to 56 cents and the average effective price per MB of data by 16.2%,” says Joosub.
“Despite this significant pricing movement, service revenue in South Africa grew 0.6% with lower prices offset by 23.3% higher voice traffic and a 31.2% growth in data revenue,” he says.
“The number of smartphones on our network in South Africa is now 7.2 million up 600 000 from the previous quarter and the average amount of data used by each smartphone increased 83.5% to 254 MB per month.”
“Our International operations have also continued to respond well to our network investment strategy and the revamp of our commercial offerings with service revenue growth of 32.6% (15.1%),” says Joosub.
“International active customers increased 22.8% to 25.0 million, which is 44.7% of our overall Group active customers. Data revenue more than doubled with data traffic now three times higher than a year ago. We are also achieving strong uptake of M-Pesa services. The international businesses continue to make an increasingly significant contribution to the Group,” concludes Joosub.