Vodacom has published its annual results for the year ending 31st March 2020 and the network operator has noted a steady increase in data traffic.
Looking solely at data customers, Vodacom now reports 21 million customers making use of data, an increase of 9.7 percent year-on-year.
According to Vodacom, this increase in customers was lead by data price reductions in summer 2019. This trend has continued this year following additional reductions on 1st April.
Vodacom reports that data traffic for the year was up 66 percent.
With all of these price reductions, Vodacom has still managed to increase its revenue across the group.
Revenue for the year ending 31st March came in at R90.75 billion, an increase of 4.8 percent year-on-year. Service revenue came in at R73.35 billion, a year-on-year increase of 5 percent.
“As part of our strategy to build diverse and sustainable revenue streams, our efforts to introduce ‘one more service’ to customers continue to gain momentum. For instance, revenue from our Financial Services business in South Africa jumped by 21.5% to
R2.0 billion, on the back of our popular Airtime Advance, insurance and VodaPay services,” said Vodacom Group chief executive officer, Shameel Joosub.
As for digital services (video-on-demand, music, sports gaming and other video services) those are also proving to be popular and successful. The network operator reports that its digital services have contributed R1.5 billion to its revenue figures.
“Our investment in Safaricom, Africa’s second biggest Telco by market capitalisation after Vodacom, delivered a 30.4% boost in profits from this associate, with growth bolstered by currency factors and inclusion of the new M-Pesa joint venture. Significant investments in network and infrastructure, an acceleration in pricing transformation and a 17.2% underlying increase in revenue from M-Pesa, all contributed to Safaricom’s success,” Joosub reported.
Overall it has been a good year for Vodacom but what about the rest of 2020?
The current pandemic has thrown a wrench in the engine that is the economy and Vodacom will monitor the situation as it unfolds.
“As the effects of the COVID-19 pandemic continue to unfold, the outlook for the economies in which we operate is uncertain. We will be postponing the issuance of medium term targets, until such time that we have more clarity on the economic outlook and the
effect on our business and operations over the medium term,” said Joosub.