South Africa: Vodacom Enjoys Increased Subscriber And Data Traffic Growth
Vodacom has shared its interim results for the six months that ended on 30 September 2018, which display big positives in South Africa.
The results show that the company gained 4.8 million customers in the six months, up 10.7%.
This included 2.5 million new additions in South Africa and 2.3 million additions in international operations.
Vodacom said these numbers increased its service revenue increased by 4.6% to R27.9 billion.
Shameel Joosub, Vodacom’s CEO noted, however, that South Africa’s economic slowdown weakened some growth.
Joosub said that the 2.5-million increase in customers in South Africa since March showed that Vodacom was delivering great value across prepaid and contract.
He added that the weaker rand against the US dollar negatively impacted device sales.
The CEO was happy to announce that mobile customer revenue grew by 3.0%, showing a consistent trend in the first six months, which was driven by strong customer growth in both contract and prepaid.
Vodacom’s work to bring down prices has also been well-received by customers as most of the new customers in the period, 2.3 million were prepaid customers.
Vodacom said customers continue to support its bundle offers and that its focus is mainly on providing customers with easier access to airtime.
Data usage grew by 28.6%.
This was impacted by Vodacom’s efforts to improve monetisation by re-balancing the promotional data that was offered to customers to encourage usage.
Data bundles sales were up by 26.0% as 437 million data bundles were sold.
The enterprise segment also performed well, with mobile customer revenue going up by 7.7% and with customer growth of 9.7%.
Vodacom said that in addition, fixed-line service revenue grew by 29.2% to R1.3 billion, with IPVPN services like IP connect Fibre and Broadband Connect showing impressive growth. Hosting and Cloud revenue increased by 14.2% with stable growth both in ‘infrastructure as a service’ and ‘platform as a service’ offerings.
Fibre to the home and business connections also doubled within the period.
All of this was in combination with the staggering R4 billion being invested into Vodacom’s network – which sees it reaching 99.5% of the population on 3G and 83% on 4G.
Vodacom added that high-speed transmission was offered to 93% of sites and carrier aggregation was enabled on over 5,000 sites in the six months.