Vodacom’s new services bolster its bottom line

VODACOM has posted a 4.5 percent increase in its annual revenue to R102.7 billion on the back of growth in new services such as financial and digital services.

Flagging the coming financial year, group chief executive Shameel Joosub said it promised to be significant, with the release of long-awaited spectrum.

For the year ended March 2022, the mobile operator posted a full-year dividend of R8.50 per share, a 3 percent increase compared to the previous year. A final dividend of R4.30 was declared. Net profit increased by 3.9 percent to R17.7bn.

Headline earnings per share improved by 3.4 percent to 1 013 cents per share, while operating profit increased by 2.1 percent to R28.2bn.

Joosub said: “We are pleased with the result given the strong prior-year comparative, which was associated with more stringent lockdowns.

“We added 1.1 million prepaid customers in the year and focused our efforts on keeping customers engaged and active on the network for additional days.”

Vodacom added 5.9 million customers, to serve a combined 129.6 million customers across the group.

“In South Africa, revenue grew by 5.3 percent to R80.8bn on the back of growth in new services, continued demand for connectivity and incremental wholesale revenue,” he said.

New services, such as financial and digital services, fixed and Internet of Things, grew 8.5 percent and contributed R8.4bn, or 14.4 percent, of South Africa’s service revenue, Joosub said.

Vodacom said service revenue growth was 3.3 percent, boosted by a strong performance in Vodacom Business. Mobile contract customer revenue went up by 5.5 percent to R22bn, with Vodacom Business and consumer contracts contributing to this growth. Vodacom added 271 000 contract customers in the financial year, mainly within Vodacom Business, and increased average revenue per user by 1.7 percent.

Joosub said the coming financial year promised to be significant now that the long-awaited spectrum auction had concluded in March, which was expected to contribute to the longterm sustainability of the industry.

Vodacom shares closed 1.57 percent lower at R143.90 on the JSE yesterday.