×

We've got news for you.

Register on SowetanLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

VODACOM GROWING

IN ITS first trading update since listing on May 5, Vodacom has announced that it has increased customers by almost 20percent and revenue by 12percent in the quarter to end-June - with local revenue growth being offset by lower international revenue.

It will report on operating profits and earnings only at the half year.

It said total customers increased 19,5percent to 41,3million year-on-year.

Group revenue increased 12,2percent to R14,2billion in the first quarter - compared with the first quarter of the previous year.

Chief executive Pieter Uys said the recently acquired pan-African carrier services and connectivity provider Gateway contributed R800million to revenue in the quarter.

Overall group revenue growth was 5,9percent, with an 8,2percent growth in SA operations, offset by an 8percent drop in revenue from international operations.

Uys said consumer spending remained under pressure.

Mobile broadband customers increased by 98000 to bring the total to 825000.

Vodacom Business had also signed up "a substantial number of corporate customers on connectivity, hosting and related service contracts".

Locally, Vodacom maintained its market share - it has 28,7million customers and a market share of 53percent.

The strongest performance was in Mozambique, while Lesotho recorded good revenue growth.

In Tanzania and the Democratic Republic of Congo revenue had decreased.

Vodacom shares started trading at R59,50 on May 5 and were at just under R58 by close of trade yesterday.

Responding to questions about what it was doing about high interconnection fees, Uys said Vodacom was "working with the regulator and engaging with the minister".

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.