Vodacom data revenues up 33.5%, eyes fibre and fixed-line expansions for 2016

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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.

Deon du Plessis

Deon du Plessis

Deon got his first taste of PC gaming at the tender age of 11 when his father bought an 8088 XT, ostensibly to "help him with his homework". Instead, it introduced him to Leisure Suit Larry, King Graham, Sonny Bonds and many more, and Deon has been a PC gamer and hardware enthusiast ever since. He landed his first professional writing gig in 2006 at a prestigious local PC magazine, a very happy happenstance as he got to write for a living about things he loves - tech, PCs, gaming, and everything in between. He's been writing about it all ever since, and loves every minute of it.