Vodacom’s revenues for the second quarter increase by 8.1 percent (South Africa)
Vodacom is a South Africa based telecom operator; Vodafone owns 65% of the company’s stake. The company announced rise in revenues for the second quarter by 8.1 percent to $2.25 billion. However, the company is known not to reveal quarterly profit figures.
At the end of month of June, the company had also seen a boost in its customer base that rose to 45.4 million, representing a 20.4% increase. In addition, the company had gained 1.9 million new customers during the quarter.
According to Pieter Uys, Vodacom Group CEO, strong data growth was again a major feature with Group data revenue increasing 37.6% and active data customers increasing 43.3% to 10.9 million. This helped support overall Group revenue growth of 8.1%.
The Group had gained 1.2 million customers during the quarter in South Africa, in addition to witnessing an increase in average minutes of use by 16.3% year on year. Apparently, that acted as an antidote to some extent with respect to a reduction in their average effective price per minute of 24.8%. On the other hand, the company’s investment drive continued in which they added 107 new 3G base stations during the quarter.
The company also tasted success with regard to their international operations as service revenue grew 11%, in addition to an increase in the customer base by 21.5%.
The respective growths of 20.4 percent and 37.6 percent in customer base and data revenue have seen the Group service revenue gain by 5.9 percent. Again, that very fact had acted as an antidote to some extent for the reduction in mobile interconnect revenue, in addition to the lower effective prices per minute. In the same vein, the active data customers grew by 43.3% to 10.9 million.
Strong handset sales propelled faster revenue growth at the rate of 8.1%. However, the growth of data revenue stood at only 4.4% of the service revenue with regard to the International operations.