Vodacom Set To Grow Financial Services Revenue

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Vodacom Set To Grow Financial Services Revenue

Vodacom has announced that group service revenue was up 5% to R74,2-billion, according to primary results for the year finished 31 March. Group revenue increased 4,3% to R90,1-billion. The group in addition has grown up its customer bottom by 5,8% to 110-million customers. The group reported operating profit of R24,5-billion, up 1,1% or 7,4% excluding a one off non-cash IFRS 2 charge of R1,4-billion, and purchase costs of R124-million relating to the BEE deal.

Operations beyond South Africa now contributing 23% to operating income, up from 14% in the last year. Continued significant capital investment of R13.0 billion to improve quality and coverage of all our networks, and reinforce our IT capabilities. Earnings per share of 867 cents and final dividend of 400 cents per share were reported. A full-year dividend of 795 cents per talk about was impacted by additional shares issued for the BEE ownership purchase. South Africa service revenue increased 2,1% to R55,7-illion, with improved growth in Q4 adding 1,5-mil new customers. Safaricom reported world wide web revenue of 14,7% and suggested both a normal dividend of KES50,08-billion (R2,3-billion) and a special dividend of KSh24,8-billion (R1,1-billion).

Safaricom added R2,8-billion world wide web income, net of the amortisation of fair valued resources and before minority interest. Vodacom concluded its R16,4-billion broad-based dark financial empowerment (BEE) possession deal in September. Shameel Joosub, group CEO of Vodacom group, responses: “This year we have returned significant value to stakeholders. We unlocked R7,5-billion in value for YeboYethu shareholders, and in September 2018 concluded the largest ever broad-based dark financial empowerment (BBBEE) deal in the South African telecommunications sector.

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“A sharp reduction in our out-of-bundle tariffs, contributed to the 37% decrease in effective data prices since the end of March last year. Furthermore to allowing customers to control their spend and utilise their data, worry-free virtually. This translates into an additional R2-billion in savings enjoyed by customers as part of our ongoing pricing transformation strategy.

Over a three-year period, data prices have fallen by 57%; despite devoid of usage of further available spectrum. “The financial impacts of delivering on our promise of further reducing the cost-to-communicate in South Africa, coupled with costs associated with concluding our new R16,4-billion BEE ownership deal, is noticeable in the subdued increase in our operating revenue. This masks an solid functional performance for the group otherwise, where service revenue grew by 5%, led by strong performance inside our international stock portfolio.

“In August this past year, through Vodacom Lesotho, we laid claim to being in Africa for connecting customers to a commercial 5G network first. Joosub adds that the group linked an additional 6-million customers to the Vodacom and Safaricom networks, a 5,8% increase to 110-million in total. Regardless of the low economic development environment in South Africa and deliberate actions to reduce charges for all sections, service income in South Africa increased by 2,1%, he provides.