Vodacom Group revenue for the quarter ended 31 December 2014 decreased 1,1% to R19,993-billion, with service revenue down 2,7% to R15,815-billion.
Excluding the impact of the 50% cut in mobile termination rates in South Africa, Group revenue increased by 1,5% and service revenue increased 0,6%.
Group data revenue increased 19,9% to R4,33-billion, representing 27,4% of service revenue.
Group active customers increased 9,1% to 61,1-million and active data customers grew 16,4% to 26,5-million.
International operations’ service revenue increased 7,6% to R3,975-billion representing 25,1% of group service revenue.
There was strong progress on accelerated capital expenditure programme with 15% of group revenue spent for the quarter to speed up LTE rollout and to expand 3G coverage.
Shameel Joosub, Vodacom Group CEO, comments: “We added 5,1-million customers in comparison to last year, taking our total customer base to 61,1-million. Despite this increase in customers, it’s still been a challenging quarter with group revenue down 1,1%.
“There was a significant impact from the 50% decline in mobile termination rates in South Africa, increased competition and we’re seeing increased pressure on consumer spending.
“Revenue in South Africa declined 3,1%; excluding the impact from MTRs revenue would have remained flat. The international operations posted a 6,6% increase in revenue.
“Data was once again a key highlight, with active data customers up 16,4% to 26,5-million and data traffic growing 62,2% in South Africa and an almost threefold increase in the international operations. Data now makes up 27,4% of service revenue,” Joosub adds.
“To support this boom in data demand as well as increase our coverage footprint, we continued with our accelerated capital expenditure programme. In South Africa, Vodacom’s LTE service now covers 34% of the population through 2 194 sites, while 3G population coverage is 94% through 8 407 sites.
“In our international operations, we’ve increased the number of 3G sites by 52,7% in comparison to last year, and the number of 2G sites is up 27,2%.
“Despite difficult trading conditions, we are continuing to invest in our networks and business, because we believe it supports our network quality and growth aspirations which will deliver positive returns for our shareholders.”
Joosub adds that Vodacom is continuing to work through the approvals process for the acquisition of Neotel.
“South Africa’s fixed broadband penetration level is one-tenth of that seen in developed economies, which impacts our competitiveness as a nation. If the transaction goes through, our ambition is to add at least one million fibre connections to homes and businesses to address this shortfall. By boosting investment in Neotel, we’re convinced we can play a major part in helping Government reach its 2020 and 2030 broadband targets.”
