Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.


Vodacom Boosts Annual Revenues, Subs Numbers

Article Image
Vodacom boosted its group revenues by 4.3% year-on-year to ZAR 90.1 billion ($6.31 billion) for its full financial year thanks mainly to strong international growth but its annual profits dipped due to the implementation of the black economic empowerment (BEE) ownership deal, which involved the issuance of new shares, and lower data fees.

The operator's earnings report for the 12 months to March 31 showed that revenues in South Africa, its home and largest market, grew by a modest 2.1% to reach ZAR 55.7 billion ($3.9 billion), but the international business increased by 15.6%.

The operator's customer base added 6 million to reach 110 million (including its share of Safaricom's customers), an increase of 5.8% from a year ago. It also noted that it added 1.1 million data users, an increase that helped deliver a 25.8% growth in data revenue.

Group level net profit suffered a minor decline of 0.8% to ZAR 15.4 billion ($1.08 billion). The company believes the dip was due in part to reducing data prices (now 37% lower on average compared with a year earlier) as well as the impact of the ZAR 16.4 billion ($1.15 billion) BEE deal, which Vodacom believes is "the largest deal of its kind in the ICT sector."

Despite the dip in profits, Vodacom's stock gained more than 3% on the Johannesburg Stock Exchange (JSE) to hit 11,497 cents.

Shameel Joosub, Vodacom Group CEO (pictured), believes the impact of the two extraordinary items masked "an otherwise solid operational performance for the Group, where service revenue grew by 5.0%, led by strong performance in our International portfolio. Excluding one off BEE costs, Group headline earnings per share (HEPS) rose by 4.2%."

Shameel Joosub, Vodacom Group CEO: 'We expect the solid momentum from our digital services platforms to continue.'
Shameel Joosub, Vodacom Group CEO: "We expect the solid momentum from our digital services platforms to continue."

Safaricom's contribution has been highlighted in the result announcement, especially the material impact of mobile finance service M-PESA. Vodacom said it is due to "conclude the acquisition of the M-PESA brand and platform related assets from Vodafone through a joint agreement with Safaricom… we expect this will further accelerate our mobile money growth plans in Africa. The commercialization of our recently-launched payment gateway and digital wallet will assist in sustaining Financial Services growth in South Africa."

"Looking ahead, we continue to make good progress on our key strategic pillars. We expect the solid momentum from our digital services platforms to continue. Further, the strategic partnerships being formed by our Enterprise business will strengthen our IoT offers and Enterprise propositions, ultimately to the benefit of consumers," Joosub added.

— Wei Shi, Site Editor, Connecting Africa

Innovation hub


Alphabet grounds Loon Internet project

Balloon-powered Internet company Loon is shutting down, an unexpected announcement after projects in Kenya and Mozambique expected to use the technology in 2021.


The state of funding for Africa's tech startups

The estimated value of startup funding in Africa during 2020 was $1.3 billion, plus about $1.12 billion worth of disclosed M&A, according to a new Briter Bridges report.

More Innovation hub

Industry announcements

More Industry announcements

Latest video

More videos

AfricaCom perspectives


AfricaCom Interview: Onica Makwakwa on closing the digital gender gap

The Alliance for Affordable Internet's head of Africa, Onica Makwakwa, shares her views on how to narrow the digital gender gap and the challenges keeping women offline on the continent.


AfricaCom Interview: Tunde Fafunwa on how the ACIP is fighting COVID-19

Tunde Fafunwa from the UN Economic Commission for Africa explains how the Africa Communication and Information Platform (ACIP) is helping Africa's battle against COVID-19.


AfricaCom Interview: Temidayo Oniosun on Africa's space and satellite industry

Space in Africa founder, Temidayo Oniosun, shares his views on the challenges and opportunities in the African space and satellite industry.

More AfricaCom perspectives

Partner perspectives

How mobile operators in Africa can address signalling threats and secure the network
By Katia Gonzalez, Head of Fraud and Security at BICS

SD-WAN and satellite – how MNOs and telcos can enjoy the best of both worlds
By Ofer Asif, SVP BizDev, marketing and strategy at Spacecom

Africa's mobile operators need better roaming monetization for growth
By Damion Rose, product manager for Mobile Signaling and Roaming Solutions at BICS

All Partner Perspectives

Upcoming events

East Africa Com
May 11-12, 2021
Virtual Event
Africa Tech Festival
November 8-12, 2021
Cape Town, South Africa
More Upcoming events

Flash poll

All polls

Like us on Facebook


AfricaCom 2019 Preview

Slideshow archive

Newsletter Sign Up

Sign Up