Vodacom revenue slides 1.1% - CNBC Africa

Vodacom revenue slides 1.1%

Earnings

by Trust Matsilele 0

Vodacom revenue slides 1.1 per cent despite company’s data revenue surging 19.9 per cent. PHOTOS: Gallo Images/tygervalley

The group’s quarterly update for the period ended 31 December 2014 also saw the company’s data revenue surging 19.9 per cent to four billion rand, representing 27.4 per cent of service revenue.

“Excluding the impact of the 50 per cent cut in mobile termination rates in South Africa, Group revenue increased 1.5 per cent and service revenue increased 0.6 per cent,” read the company’s statement.

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“Group active customers increased 9.1 per cent to 61.1 million and active data customers grew 16.4 per cent to 26.5 million.”

The mobile telecommunications company also saw international operations' service revenue increasing 7.6 per cent to three billion representing 25.1 per cent of group service revenue.

Shameel Joosub, [DATA VOD:Vodacom Group Limited] chief executive welcomed the news saying the company had added 5.1 million customers in comparison to last year, taking our total customer base to 61.1 million.

“Despite this increase in customers, it's still been a challenging quarter with group revenue down 1.1 per cent,” said Joosub.

“There was a significant impact from the 50 per cent decline in mobile termination rates in South Africa, increased competition and we're seeing increased pressure on consumer spending.”

Joosub said data was once again a key highlight, with active data customers up 16.4 per cent to 26.5 million and data traffic growing 62.2 per cent in South Africa and an almost threefold increase in the international operations.

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The chief executive added that the group had delivered encouraging growth in new business segments.

“Business managed services revenue grew 27.4 per cent and active M2M connections increased 17.1 per cent to 1.6 million,” said Joosub said.

“We continue to utilise the Vodafone Global Enterprise network and the Vodafone global
M2M platform to increase the scale to our enterprise services.” 

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