Vodacom device insurance drives surge in revenue
Vodacom’s latest annual report documents a surge in revenue from its insurance division in South Africa, led by device insurance. The company announced its financial results for the year ended March 2015 and reported a recorded 36 per cent increase in its insurance business that offers contract, life, funeral, and other insurance cover. While overall South African service revenue declined 2.7 per cent to R47 billion, insurance-related revenue grew to R441.4 million, from R324.6 million in 2014. The mobile operator began selling insurance after the Financial Services Board (FSB) granted them a long-term insurance licence in 2012. The group’s mobile cover ranges between R35 for a phone with a value of up to R1 000, and R245 for phones beyond R15 000. The number of active smart data devices on Vodacom’s network increased 29.7 per cent to 11.6 million – of which 9.3 million are smartphones, 1.1 million are tablets and 1.2 million are modems.