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


Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.


Afretec awards $3.3M in grants to African research teams

The African Engineering and Technology Network (Afretec) has awarded grants worth $300,000 each to 11 university research teams across Africa to advance digital technologies.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives


Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.


Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.


Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives


Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.


Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up

Sign Up