Vodacom targets various income streams amid dip in interim earnings

Vodacom Group on Monday (15 November) revealed its interim outcomes for the six months ended September 2021, exhibiting a decline in working revenue, whereas service income was flat over the interval.

Headline earnings per share declined to 505 cents per share, from 532 cents per share earlier than, however when adjusted for the one-off deferred tax charge adjustment within the prior interval, grew 3.0%, Vodacom mentioned.

Group income of R49.9 billion was up 4.2%, as robust normalised progress of seven.9% was partially offset by rand appreciation, it mentioned.

The group added 6.2 million clients, to serve a mixed 129.9 million clients, whereas it declared an interim dividend of 420 cents per share, up 1.2%.

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South Africa service income grew 3.6% to R28.6 billion, supported by continued demand for connectivity, incremental wholesale income and progress in our new companies, the operator mentioned. New companies corresponding to monetary and digital companies, fastened and IoT delivered robust progress within the interval, contributing R4 billion of South Africa’s service income.

Cellular contract buyer income elevated by 4% to R10.6 billion. Vodacom Enterprise continued to ship robust progress whereas client contract income was secure year-on-year. Vodacom mentioned it added 140,502 contract clients within the half, primarily in Vodacom Enterprise, and elevated ARPU by 1.4%.

“Within the prior interval, pay as you go ARPU reached R64 as clients elevated utilization in the course of the extra stringent lockdown restrictions. As these restrictions eased, pay as you go ARPU normalised and within the present interval was R56. Encouragingly, pay as you go ARPU of R56 within the second quarter is larger than pre-Covid ranges and up 1.8% quarter-on-quarter, as value transformation initiatives supported incremental utilization.”

From a buyer base perspective, robust industrial initiatives supported second-quarter web additions of 1.2 million, with pay as you go clients up 6.4% year-on-year, Vodacom mentioned.

“The mixture of ARPU normalisation and subscriber progress resulted in a broadly flat cellular buyer pay as you go efficiency within the interval. Adjusting for the R142 million loyalty programme provision launch within the prior interval, pay as you go cellular buyer income elevated 0.8% (2Q: -0.1%) within the yr.”

Knowledge site visitors elevated 13.1% within the interval and accelerated to 17.9% within the second quarter.

Quarter-on-quarter, knowledge site visitors was up 12.6%. “We added 1.1 million knowledge clients within the interval, reaching 22.8 million clients, up 2.4%. Sensible units have been up by 11.1% to 24.5 million whereas 4G units elevated by 21.5% to 17.2 million. The common utilization per good system elevated by 7.3% to 2.2GB monthly,” mentioned Shameel Joosub, Vodacom Group chief govt officer.

In November, the group introduced a serious step ahead in scaling its fibre providing in South Africa. By means of the acquisition of a 30% stake in Group Funding Ventures Holdings (CIVH) fibre belongings, Vodacom mentioned it would achieve publicity to fibre gamers together with Vumatel and Darkish Fibre Africa.

“Trying forward, we’re centered on the event of our various service choices and M&A deal completion as we proceed our thrilling evolution from a telco to a techco. Within the face of continued knowledge demand and the uncertainty of the continued pandemic, we’re inspired by ICASA’s proposed licensing of provisional spectrum in South Africa,” mentioned Joosub.

Group capital expenditure for the reporting interval amounted to R6.9 billion, with R5.6 billion invested into South African operations.

“Within the present monetary yr, we’ll make investments greater than R10.5 billion into our world-class community, along with the R47 billion we spent over the previous 5 years alone. That is notably related at a time when lots of our clients continued to work, entertain, and educate from residence,” mentioned Joosub.

Learn: Vodacom acquires stake in Vumatel and Darkish Fibre Africa

Artmotion S.Africa

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