Vodacom gets one million more South African subscribers

 VODACOM has increased its revenue by 5.8 percent to R19 billion in the first three months ended June as it added 1 million more South African customers to its network.

In the three months between March and June, Vodacom’s South African operations delivered strong active customer growth, up 5.4 percent to 35.1 million, adding just under 1 million customers in the quarter.

Vodacom South Africa sustained robust service revenue growth of 5.6 percent to R12.4 billion despite increasing pressure on consumer spending.

Data revenue increased 18 percent to R4.6 billion and now contributes 37.8 percent to service revenue.

But the number of the group’s overall active customers declined 2.6 percent to 61.8 million.

Vodacom said the growth in its customer base was impacted by new customer registration processes in international markets.

Group chief executive Shameel Joosub, said Vodacom’s strong performance last year had continued into the first quarter of the company’s new financial year and was reflective of the successful execution of its well-planned strategy.

Vodacom reported solid results for the previous year with group service revenue rising 7.4 percent to R66 billion underpinned by improved trends in voice revenue and data revenue growth of 28.5 percent.

“Despite the tougher economic environment in most of the countries in which we operate, the group delivered robust service revenue growth of 7.3 percent,” Joosub said.

“One of the major highlights this quarter is the stellar number of customer additions in South Africa in both postpaid and prepaid, where we added almost one million customers.”

Joosub said this could largely be attributed to the significant investments that Vodacom made in infrastructure to sustain its competitive advantage to deliver the best network, great customer service and value to customers.

Vodacom’s capital expenditure for the three month period was R2.7 billion, equivalent to 13.6 percent of group revenue. – ANA