Vodacom reports heavy data traffic – here’s the average usage per smart device

ByLance T. Lee

May 16, 2022

Vodacom Group on Monday May 16 announced a 4.5% increase in revenue to R102.7 billion for the financial year ending March 2022 and paid a dividend of R8.50 per share, up slightly from compared to the previous year.

The group said overall earnings per share improved 3.4% to 1,013 cents per share, while operating profit rose 2.1% to R28.2 billion.

The operator said it added 5.9 million customers, to serve a total of 129.6 million customers across the group.

In South Africa, revenue increased 5.3% to R80.8 billion driven by growth in new services, continued demand for connectivity and increased wholesale revenue.

New services, such as financial and digital services, fixed services and the Internet of Things (IoT), grew by 8.5% and contributed R8.4 billion or 14.4% of services in South Africa. Service revenue rose 3.8% to R58.5 billion, Vodacom said.

During the quarter, services revenue growth was 3.3%, supported by a strong performance from Vodacom Business, he said.

Revenue from mobile contract customers increased by 5.5% to R22 billion, with Vodacom Business and consumer contracts contributing to the growth. The group said it added 271,000 contract customers during the year, mostly within Vodacom Business, and increased ARPU by 1.7%.

Revenue from prepaid mobile customers fell 0.7% to R25.2 billion. Taking into account a provision of 142 million rand for the loyalty program the previous year, revenues from prepaid mobile customers remained stable, he noted.

“We are pleased with the result given the strong comparison with the previous year, which was associated with stricter lockdowns. We added 1.1 million prepaid customers during the year and focused our efforts on keeping customer engagement and activity on the network for additional days,” said Shameel Joosub, CEO of the Vodacom group.

Higher customer engagement supported the prepaid ARPU of R56, which was above the pre-Covid-19 level of R54, he said.

Data traffic grew 19.2% year-on-year and accelerated to 24.3% in the fourth quarter. “We added 1.8 million data customers, reaching 23.5 million customers, up 8.2%. Smart devices increased by 13.1% to 26.2 million, while 4G and 5G devices increased by 23.9% to 18.5 million,” the chief executive said.

Average usage per smart device increased by 14% to 2.4 GB per monthhe said.

Prepaid data revenue increased 3.1% to R10 billion as strong usage growth was offset by pricing transformation including our duty-free ConnectU platform, discounted offers for poor communities and further reductions to major monthly data plans implemented April 1, 2021.

Revenue from fixed services was up 13.0% excluding wholesale transit. This was supported by strong customer adoption of fiber with connected homes and businesses reaching 142,2111, while our own fiber served 155,903 homes and businesses.

Through the proposed acquisition of a 30% stake in the fiber assets of Community Investment Ventures Holdings (CIVH), Vodacom said it would gain exposure to highly attractive, fast-growing companies and larger players free access fiber from South Africa, including Vumatel and Dark Fiber Africa.

Financial services revenue increased by 12.4% to R2.7 billion, while Vodacom Business services revenue increased by 11.6% to R17.7 billion, driven by the continued demand for innovative work-from-home solutions and continued growth in landline services. , says the group.

“IoT remains a significant growth driver for new services with connections up 17.3% to 6.6 million and revenue growth of 31.5% to R1.4 billion. During the quarter , Vodacom Business services revenue increased by 9.6%,” said Joosub.

“The past year can be described as a pivotal year for Vodacom in which we have made significant progress in our transition to a pan-African technology company thanks to the two significant proposed strategic acquisitions which we announced in November last year. and the commercial launch of our consortium. in Ethiopia this year.

“The purchase of a 55% stake in Vodafone Egypt, which has a proven track record of consistent revenue growth, is nearing completion and will help us drive greater digital and financial inclusion in Egypt by leveraging our financial services platforms, global partnerships and best practices.”

Looking ahead, the managing director said the war between Ukraine and Russia had a significant impact on commodity prices, increasing the risk of inflation globally, which is likely to impact on customer affordability and will weigh on economic growth.

“This will place greater reliance on our ability to offer personalized nano pricing through our innovative ‘Just4You’ platform, in addition to other proactive innovations to adapt to changes in customer behavior.

Read: Vodacom South Africa appoints chief executive

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