/ 16 May 2011

Vodacom grows customers, profit

Vodacom has grown its customer base significantly while headline earning per share have grown by 29%, according to its preliminary results released on Monday.

“Group customers increased 9% percent to 43,5-million,” Vodacom said in a statement on its results for the year ended March 31, 2011.

Headline earnings per share — a measure of profit — were up 28,6% to 656 cents per share.

“Credit to the team for the financial and operational results, delivered in an environment of mobile termination rate reductions, price reductions and inflationary cost pressure,” Vodacom Group CEO Pieter Uys said.

“This has been achieved through a sharp focus on the customer experience, the R6,3-million capital invested in our networks and delivering on our R500 million cost efficiency programme.

“The resulting 51% increase in total shareholder returns is really pleasing,” he said.

The company declared a final dividend of 280 cents per share.

Vodacom’s group data revenue increased by 35,5% to R6,4-million while it had a 34,6% growth in its South African data customers to nine million.

“The decision we took some years ago to lead the industry on mobile data is bearing fruit,” said Uys.

“The combination of considerable investment in new base stations and taking charge of our own transmission has put us in an enviable position. The new dual-carrier technology that we’re rolling out across the network has both speed and capacity benefits and will support continued growth in the data business.” — Sapa