Vodacom’s revenue for the period ended in March 2005 rose 19,5% to R27,3-billion, with profit from operations increasing 24% to R6,5-billion, the firm announced on Monday.
During the period under review, the company’s subscriber base surged 38% to 15,5-million, in five southern African countries, of which 12,8-million are in South Africa, where the company achieved a 32% growth.
In South Africa, Vodacom competes with Saudi Arabia-backed Cell C and MTN.
Vodacom’s market share now stands at 56% in the country.
Vodacom’s dividends steamed ahead 61,9% to R3,4-billion. The company’s shareholders are Telkom, which has a 50% stake, VenFin which holds 15% and the Vodafone Group holds the remaining 35%.
In Tanzania, Vodacom’s subscriber base breached the million mark to reach 1,2-million after soaring 75,6% for the period ended in March 2005. In the Democratic Republic of Congo, its base has increased 54% to one million.
In the tiny kingdom of Lesotho the company surged 83,8% to 147 000 subscribers while its revenue rose 15,1% to R137-million. The Mozambican operation — where Vodacom lags behind M Cel — vaulted 357% to 265 000 users and its revenue reached R103-million from last year’s R13-million.
Operations outside South Africa — representing 2,6-million customers — contributed 8,3% to revenue. Mozambique remains a tough challenge, but Vodacom is confident that in the medium to long-term this market will also contribute to the firm’s overall growth.
The cellular network said growth was driven by excellent performances from its four operations, with the exception of Mozambique — which remains in its start-up phase.
Vodacom attributed the increase in revenue to customer growth and, consequently, an improved market share.
However, the firm experienced a decline in average revenue per user (arpu). Locally, arpu fell R14 to R163 per month for the year.
Although MTN lags behind Vodacom on customer figures, it is a leader in terms of sales and its arpu is forecast at R185 per month or R22 higher than Vodacom’s.
Lesotho’s arpu fell 26,4% to R92 per month with the Democratic Republic of Congo’s surrendering 36,7% to R81.
MTN, with about 14-million users in six African countries including Nigeria, is due to announce its earnings results on Thursday.
Vodacom is set to enter the Nigerian market by means of snatching a 51% stake in M-Tel as well as buying a majority holding in the West African country’s V-Mobile in partnership with the UK’s Virgin Mobile.
During the period under review there were no investments in respect of cellular networks although the African leader made purchases of businesses that are of strategic importance, including the process of gaining control of its service provider channel.
Vodacom has committed itself to buy its customer bases from certain independent service providers. If all conditions are met, its commitments are estimated at R1,2-billion.
During the year, Vodacom made an offer to buy a 51% holding in Cointel VAS for R112-million and is currently awaiting the Competition Commission’s decision.
The group in South Africa preparing for a range of new regulatory legislation including the empowerment charter, mobile number portability, the Convergence Bill as well as the Monitoring and Interception Act.
These regulatory developments will lead to changes in the operating environment and may have an uncertain impact on business, the group said. – I-Net Bridge