Vodacom Group has announced its trading update for the quarter that ended 31 December 2022.
Some of the salient highlights of the same are as follows:
- Group revenue increased 14.8% (4.7%*) to R30.7 billion, positively impacted by the acquisition of Vodafone Egypt and rand depreciation against our basket of international currencies.
- Group service revenue was up 16.1%, with normalised growth of 3.5%*, supported by growth in data revenue and financial services.
- South Africa service revenue grew 3.0%, underpinned by a strong performance in mobile prepaid.
- South Africa service revenue grew 3.0%, underpinned by a strong performance in mobile prepaid.
- Financial services revenue increased 30.6% (16.5%*) to R2.6 billion, with VodaPay super-app downloads reaching 4.5 million.
- Vodafone Egypt was consolidated from 8 December 2022.
The third quarter of our current financial year is the first set of results that includes revenues from what Vodacom expected will be a transformative transaction for the Group – its acquisition of a 55% stake in Vodafone Egypt.
In December last year we announced the finalisation of the R43.6 billion deal, the largest in Vodacom Group’s history, and one that cements our position as a leading pan-African technology company in addition to diversifying and accelerating our growth profile. It also means that our population reach exceeds 500 million people across Africa, providing a clear growth path for Vodacom.
Shameel Joosub, CEO, Vodacom Group
Vodafone Egypt was consolidated from 8 December 2022, contributed over R1.8 billion to Group service revenues and was a key factor, alongside currency gains and operating model resilience, in the 16.1% improvement in its service revenue, despite ongoing financial market volatility and weaker prospects for the global economy.
The 4.7% increase in normalised Group revenue – which strips out currency fluctuations and the impact of Vodafone Egypt’s acquisition – underscores the ongoing resilience of the Group’s portfolio at a time when economic uncertainty prevails in the face of the war in Ukraine and the supply chain impacts of the COVID-19 pandemic.
In addition to delivering value to shareholders by ensuring the smooth integration of Vodafone Egypt into the Vodacom Group, we remain firmly focused on our purpose of connecting people for a better future and, in particular, assisting customers impacted by cost of living constraints.
A prime example of delivering on this promise was through our recent innovative summer campaign whereby customers in South Africa, our largest market, benefited from Vodabucks rewards, which were convertible into cash and could be used for purchases on the VodaPay super-app. While producing even greater value to customers, this mechanism also showcases an evolution in the Vodacom ecosystem that resulted in a significant uplift in downloads of the VodaPay super-app, breaking through the 4.5 million mark, with 2.7 million registered users.
Shameel Joosub, CEO, Vodacom Group