Subscribers up, revenue up – things keep getting better for Vodacom

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Vodacom has revealed its financial results for Q4 2016 and there’s good news for investors.

Revenue for the period ending 31st December 2016 for Vodacom’s international revenue increased 1.2% year-on-year thanks largely to Vodacom’s local subscriber base increasing by 6.7% from 2015.

Internationally however Vodacom saw subscriber numbers fall 7.5% after it had to disconnect customers in 2015. The silver lining of that dark cloud is that big red managed to to add 876 000 new international customers to its network during Q4 2016.

Switch to bundles, seriously

Vodacom subscribers are also seemingly wising up to the fact that out of bundle rates for data, calls and text messages are exorbitantly high.

Revenue from in bundle services increased year-on-year by a factor of 4.7% for contract and 18% for prepaid.

The take away from this for subscribers who wish to “stick it to the man” as it were, is that you should stay in bundle.

The latest report shows that Vodacom made less per quarter from out of bundle fees – 2.6% less for those counting – but it still makes the bulk of its money from them. For contract users, out of bundle revenue was R1.7 billion compared to R4.3 billion for in bundle fees.

In terms of prepaid customers – out of bundle revenue is still high at R4.2 billion compared to R1.4 billion for in bundle.

“Improvements made to our out-of-data-bundle notification journey have resulted in an improved customer experience by giving customers more control,” stated Vodacom.

So if you’re looking to save a bit of money every month the solution is simple. Use bundles where ever its possible.


Brendyn Lotz

Brendyn Lotz

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.