https://www.engineeringnews.co.za

Vodacom reports higher Q3 revenue as South Africa drives growth

Vodacom CEO Shameel Joosub

Vodacom CEO Shameel Joosub

Photo by Duane Daws

1st February 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

JSE-listed telecommunications giant Vodacom on Wednesday reported strong growth in South Africa during the three months to December 31.

In a trading update to shareholders, Vodacom reported group service revenue of R17.4-billion and revenue of R21.2-billion, up 1.3% and 1.2% year-on-year respectively during the third quarter of its 2017 financial year.

“Performance was driven by strong customer growth in South Africa and strong data demand. In our international operations, the effect of customer disconnections in the fourth quarter of the prior year is still impacting its performance,” Vodacom CEO Shameel Joosub said.

South Africa service revenue grew 5.5% to R13.4-billion on the back of strong data revenue growth of 22%, while the international service revenue declined 8.2% to R4.2-billion owing to customer registration processes and currency volatility.

Some 1.6-million active customers were added during the quarter – 690 000 in South Africa and 876 000 in the international operations – reaching 65.2-million active customers across the group.

Data traffic growth of 44.8% was registered in South Africa and 61.7% across the international operations, with data now comprising 40.8% of service revenue in South Africa and 25.2% in the international operations.

In line with the rapid growth, Vodacom injected R2.7-billion into its infrastructure, with the bulk at R2.1-billion used to expand fourth-generation coverage to 70% of the population and third-generation to 99% of the population in South Africa.

Capital expenditure guidance will be maintained at R40.6-billion over a three-year period, with R27.4-billion allocated to South Africa.

Edited by Creamer Media Reporter

Comments

Showroom

Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.085 0.141s - 164pq - 2rq
Subscribe Now