Vodacom has announced its interim financial results for the six months ending on 30th September today, which look very good thanks to sustained growth in terms of its customer base as well as the expansion of the company’s LTE data network.
There are now 65.1 million people across the continent using Vodacom’s cellular services, up by 6.8% on last year’s numbers, leading to a Group revenue increase of 6.4%. Headline earnings per share increased by 6% to 440c, compared to last year’s 415c. After a mild panic in May following its first decline in profits in five years for the financial year ending February 2015, the company’s operating profit has risen year-on-year by 7.8% to a massive R6.2bn.
The company revealed that not only did data revenues grow by 33.5% year on year, but there are additional opportunities to boost revenues as apparently only 66% of Vodacom’s South African customers use data.
LTE represents an additional opportunity to grow revenues, as the company found that LTE customers use up to three times as much data as 3G users do. Helping that along, LTE coverage increased from 32.2% to 46.8% of the entire country.
“It has been a strong start to the year with sustained growth underpinned by network superiority, customer value management excellence and distribution leadership”, Vodacom Group CEO Shameel Aziz Joosub said in a statement.
Vodacom’s acquisition of fixed-line provider Neotel is currently pending approval by the Competition Tribunal, and should it go through expect the cellular provider to offer some interesting fibre packages during the course of the next year.
Jooosub ended off by saying that “…we plan to invest more into fibre and other new growth areas by building the right capability to ensure we sustain growth into the next year.”
MTN, meanwhile, is having nowhere near as good a year.