Shameel Joosub, Vodacom Group CEO, today announces Vodacom Group results for the financial year ending 31 March 2017. And it's great news from South Africa's Best Network.
- Group service revenue is up 2.3% and Group revenue up 1.5%; normalised for the effects of foreign currency translation this growth was 4.4% and 3.4%* respectively.
- South Africa service revenue increased 5.6%, aided by strong customer net additions of close to 3.0 million.
- International operations’ service revenue declined 5.6%, normalised up 2.2%*; impacted by currency volatility, and customer registration processes.
- Group data revenue is up 16.4%, supported by our strategy of data network investment and device migration.
- Group EBITDA grew 2.9% to R31 238 million, up 7.1%* excluding foreign currency translation impacts, with margins improving by 0.5ppts to 38.4%.
- Group capital expenditure of R11 292 million, with focus on data expansion and information technology.
- Headline earnings per share (HEPS) up 4.5% to 923 cents per share.
- Final dividend per share of 435 cents, taking the total dividend to 830 cents per share for the year.
Shameel commented on these positive results, saying: ' A year ago we said that the strategies that we have implemented to differentiate our network experience, to proactively change our pricing and to offer customers more value through segmented and personalised offers, will continue to sustain revenue growth.
Our solid results this year show that we continue to make great progress against these strategic priorities with our performance driven, in particular, by strong customer growth in South Africa, where we added close to three million customers, largely contributing to a 5.6% increase in service revenue growth.'
Infrastructure is key
2016 was a landmark year for Vodacom, with rulings by the Advertising Standards Authority and results of tests by MyBroadband allowing Vodacom to confidently assert that it indeed has SA's Best Network. Not only does Vodacom offer SA's fastest mobile internet speed, but also the fewest dropped calls of any network.
These achievements are, of course, the result of massive infrastructure investment - a staggering R8.5 billion in South Africa alone. Since inception, Vodacom has invested over R142 billion (adjusted for inflation) in the network - so that explains why you can get reception virtually anywhere in SA, and download your emails too.
Vodacom remains the first choice for South Africans looking for excellent data and web coverage. There are 15.1 million smartphones on the SA network, now enjoying 75.8% 4G coverage, and 3G coverage of 99.8% of the population. And as the stats show, Vodacom's download speeds are 50% faster than the next best competitor.
While data pricing has been a subject of much debate recently, Vodacom has responded by dropping the effective price of data by 16% over the past year. Consumers have responded by showing us their appetite for data is as hungry as ever: usage is up by 16.4%, and active users have increased by 8.3%.
All this, for free!
Vodacom has also demonstrated their commitment to the wider community by offering a range of awesome online resources completely free of charge to their customers.
Shameel says: 'Cognisant of our responsibility to increase digital and social connectivity in South Africa, we introduced Siyakha in early 2017. Siyakha is a platform that offers zero-rated content and lower priced products and services, which form part of our effort to help improve the lives of people that can least afford communication costs.'
See all the results
Follow the results, and read comments from Shameel Joosub, on vodacom.com.