Success in Tanzania and Congo boosts Vodacom revenue

Zweli Mokgata

Zweli Mokgata

Vodacom showed a healthy increase in revenue for the second quarter of the year despite increasingly depressed market conditions.

The company increased its revenue by 14,5percent for the quarter to June compared to the same period last year.

Lindsey McDonald, Frost and Sullivan ICT analyst said: "There wasn't anything bad about the numbers, especially considering the current market conditions."

The most significant growth in customer numbers was experienced in Tanzania and the Congo, areas which are still relatively under-served.

Tanzania had the biggest growth in customers with an increase of 288000 customers from the previous quarter. These were mostly prepaid customers.

South Africa was the only country where contract customer growth exceeded the growth in prepaid customers. In fact prepaid customers fell, while 102000 new contract customers joined the company during the period.

This was an indication of Vodacom's strategy to attract higher end customers through its premium offerings.

McDonald said: "Vodacom could have marketed its service to people in that area. There is definitely a trend toward data products. People might find these bundled services more attractive right now."

The performance was a sharp contrast to big competitor MTN's results for the quarter up to March this year where the biggest gains in South Africa were in the pre-paid segment.