telecompaper.com:
African mobile operator Vodacom saw its customer base grow in the
first half ended 30 September by 22 percent to 48 million, with active
data customers up 38 percent. EBITDA increased 7.6 percent to ZAR 10.5
billion, and the EBITDA margin was stable at 33.2 percent. Group
service revenue rose by 6 percent. Headline earnings per share
increased 6.9 percent to ZAR 0.324, mainly due to growth in operating
profit before impairments and a reduction in finance charges, offset
by increased taxation. Basic earnings per share of ZAR 0.301 were
little changed year-on-year due to impairment losses of ZAR 318
million. The turnaround in the international segment helped contribute
to the 6 percent increase in operating free cash flow to ZAR 6.9
billion.
Vodacom South Africa posted a 4.7 percent increase in service revenue
to ZAR 23.5 billion. Equipment sales were particularly strong, growing
20.3 percent, contributing to overall revenue growth of 6.7 percent.
Gross connections increased sharply to approximately 8.0 million, with
the brand refresh and numerous promotions and handset deals the
primary drivers of the 56.5 percent change. Customers increased 21.1
percent year on year to 28.9 million, a net increase of 2.4 million in
the six-month period. This was achieved despite the disconnection of
537,000 SIMs that were locked at the RICA deadline. Churn also
increased in the second quarter as a result of these RICA
disconnections. Total ARPU was down 9.0 percent to ZAR 141, largely
due to lower interconnect rates and the higher prevalence of lower
usage customers in the mix. Data revenue increased 29.4 percent to ZAR
3.7 billion, and active data customers grew 32.3 percent to 10.5
million, representing 36.2 percent of customers. Customers regularly
purchasing data bundles grew by 89.7 percent to 3.5 million. EBITDA
increased 6.6 percent, with the EBITDA margin maintained at 35.9
percent. Capital expenditure increased 83.4 percent to ZAR 3.0
million (11.0% of revenue) as the firm made substantial investments to
increase capacity and enhance quality.
The company said the positive momentum in the international mobile
network operations continued, with service revenue in local currency
increasing 20 percent. Total revenues from international rose 13.3
percent to ZAR 4.4 billion due to strong growth in customers and
relatively stable macro environments. Customers increased 22.5 percent
year-on-year to 19.0 million, adding 2.0 million in the six months.
Take up of the M-Pesa service in Tanzania accelerated, with active
customers reaching 2.2 million, penetrating 21.0 percent of the
customer base. Despite the cost pressures from fuel and
foreign-denominated operational costs, international EBITDA increased
by 12.4 percent to ZAR 660 million, and the EBITDA margin was stable
at 14.6 percent. The international operating profit was negatively
impacted by impairment losses of ZAR 318 million, mainly for a weak
performance at the business unit Gateway.