Key highlights from Vodacom last quarter

Overall the numbers are showing increase which goes well for Vodacom (and the shareholders).

Interesting to note that active data customers grew 43.3% to 15.7 million which ties in with the number of active smartphones which is up by 40.9%

As predicted – data is where its all at and where the game is being played…

So Highlights from the report ending 30 June 2012:

Group service revenue growth boosted by performance in key growth areas

  • Group service revenue growth up 8.7% (5.7%*)
  • Group revenue up 9.3% (6.5%*)
  • Customers1 up 29.2%, to 50.0 million

Robust data demand:

  • Group data revenue up 16.6%
  • Data revenue contributing 15.4% to service revenue
  • Group active data customers grew 43.3% to 15.7 million

· Continued growth in South Africa

  • Service revenue up 1.8% (4.6% excluding the impact of mobile termination rates)
  • Customers1 increased by 29.1% to 31.0 million
  • Active smartphones up 40.9%
  • Continued investment in network leadership

International driving growth:

  • Contribution to Group service revenue increased to 20.5%
  • Service revenue up 46.7% (23.4%*)
  • Customers1 up 29.4% to 19.0 million
  • Active M-Pesa customers in Tanzania increased to 3.6 million, up 120.7%

Pieter Uys, Vodacom Group CEO commented:

“Overall this was a good quarter with a particularly strong performance from our International operations supporting Group service revenue growth of 8.7%. The connectivity revolution is well underway with close to 16 million customers actively using data, up 43% from the prior year.

In South Africa, one of our key advantages is the size and reach of our network. Given the increasingly competitive environment, quality and capacity both set Vodacom apart and give us the means to compete with targeted value promotions. As an example Vodacom4Less, NightShift and more recently Power Hour tap into excess capacity on our network during slack periods and translate this into very competitive prices for our customers. Other customer groups are driven by entirely different things such as compelling data promotions and have benefitted from the reduction in the average effective price per megabyte of 26%.

I’m particularly pleased with the sustained high growth delivered by the International operations. The primary driver has been solid commercial execution, supported by a healthy macroeconomic environment. Service revenue from these businesses now accounts for 21% of Group service revenue, compared to 14.5% two years ago. Data demand in this segment is accelerating, with active data customers increasing 152% and data revenue up 150%.”

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