26th February 2024 10:04 am
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Vodacom sold 3 million devices in 3 months thanks to demand for data services

Vodacom’s records from the last quarter of 2015 show an increase of almost over 7% in revenue South Africa, thanks to customers’ demand for data and smart products.

The mobile network revealed that the sustained demand for data services and customers upgrading to 3G and 4G mobiles lead to data revenue in South Africa growth of 27.3% to R4.5 billion, year-on-year, making up 35.3% of service revenue, up from 29,7% in 2014.

Total revenue in South Africa grew by 7.1% to R17.1 billion which was underpinned by a 7.7% increase in equipment revenue, having sold three million products in the quarter.

In total, Vodacom recorded 34.1 million active customers in South Africa, an increase of 8.7% year-on-year.

Broken down to specifics, active prepaid customers saw an increase of 10.3% to 29.2 million, while Vodacom recorded flat new contract customers growth, which is as a result of over 75 000 disconnections by Altech Autopage.

Active data customers increased by 14% to 19.1 million, active smart mobiles increased by 28.2% to 13.5 million and the average amount of data used per month on smart mobiles increased by 22%.

“The improved affordability of both devices and data bundles supported a 46,6% increase in data traffic,” Vodacom added. It also revealed that its 4G/LTE coverage has been expanded to reach 54% of the country’s population.

The Vodacom Group, which includes all markets across the continent, recorded R21.7 billion in revenue, going up 7.6%. Group data revenue rose by 27.5% to R5.5 billion, representing 32% of service revenue.

The group’s customer base rose to 65.2 million, up 6.8% from 2014. Data customers increased by 14.5% to 30.3 million.

“The two biggest highlights in the quarter are the accelerated service revenue growth of 7,2% in South Africa and the 6,8% increase in the group customer base,” Vodacom CEO Shameel Joosub said in a statement.

Joosub added that revenue growth will taper slightly into the Vodacom Group’s last quarter of the 2015/16 financial year thanks to a stronger prior year by comparison and a weaker outlook for the consumer in South Africa due to the drought and weaker exchange rate.

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