Vodacom made 7.5-times more revenue from mobile data than messaging

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Vodacom has announced its quarterly earnings for the last three months, and while it made R12.4 billion in revenue in South Africa, there are some telling figures about mobile messaging.

For the quarter ended 30 June 2016, the company made R4.6 billion just from mobile data (an increase of 18% over last year) in South Africa. In comparison, it only made R607 million from mobile messaging.

People are definitely sending less SMS messages in favour of using data to communicate, and even the revenue for voice was up 2%, generating R5.7 billion in revenue for the company.

“Customer demand for data remains robust with data revenue growth of 18% in South Africa as we continue to drive a worry-free experience through in-bundle offers having introduced an innovative solution that more effectively notifies customers when bundles are depleted,” said CEO Shameel Joosub in a media statement.

He also explained that a lower price in the cost per megabyte in data is what contributed to the higher uptake.

“The 16% reduction in effective price per megabyte underscores our commitment to providing customers with great value, as does the recent launch of new Vodacom branded devices, which includes our first premium smartphone, the Smart Platinum 7.”

But it’s not just in the South African figures where this picture is playing out, as its international revenue follow a similar trend.

For the same quarter internationally, Vodacom made R2.4 billion from voice and just over R1 billion in data. For mobile messaging, its international operations only yielded R112 million.

Putting all those figures together, Vodacom in the quarter made R8.1 billion from voice, R5.7 billion from mobile data, and only R719 million from messaging.

Vodacom also revealed that it has 35.1 million active customers, with 30.1 million customers being on a pre-paid scheme. While it didn’t give an exact number, Vodacom said that it added around 51 000 contract customers to the network.

Charlie Fripp

Charlie Fripp

Charlie started his professional life as a motoring journalist for a community newspaper in Mpumalanga, Charlie explored different journalistic angles since his entry into the fast-paced world of publishing in 2006. While fostering a passion for the arts, Charlie developed a love for technology – both which allowed him to serve as Entertainment and Technology Editor for an online publication. Charlie has since been heavily involved in consumer technology for various websites and publications. He thoroughly enjoys World War II films and cerebral documentaries; aviation; photography and indie music. Oh yes, and he also has a rather strange obsession with collecting coffee mugs from his travels.