Vodacom shares off despite 12.2% revenue growth

Shares in mobile operator Vodacom (VOD) declined, albeit it fractionally, in afternoon trade on the JSE on Wednesday (8 February 2012) – despite record customer growth and a 12.2% rise in group revenue for the quarter ended December 2011, to R17.997 billion.

By 16:00, Vodacom declined 20 cents to R101.20 on the JSE.

Vodacom highlighted record net customer additions of five million in the quarter, with group customers up 27.3% to 52.9 million.

Vodacom noted a 41.2% increase in group active data customers to 13.8 million and data revenue increased 23.8% to R2.082 billion.

South Africa delivered a solid performance with service revenue growing 5.6% to R12.755 billion.

Customers increased 25.4% year on year to 31.7 million, a record net increase of 2.8 million in the quarter.

A dealer at PSG Konsult told BusinessTech that the market had already factored in “a good set of numbers” which were in-line with analyst expectations.

Vodacom recorded attractive growth in 2011, up 26% and ending the year a fraction over R90. That growth has continued in 2012, up more than R10 already.

An analyst at Thebe Stock Broking said that international growth was still an area of concern for the group. Vodacom’s international operations include those in the Democratic Republic of Congo, Tanzania, Mozambique and Lesotho.

“I would continue to look at Vodacom’s data business, having set out ambitious targets. With operations in only four other territories, there is an emphasis on its (Vodacom) data growth and plans,” he said.

South African data revenue growth slowed to 19.3% year on year to R1.929 billion. “The active data customers increased 31.5% to 11.4 million; a third of these customers are now buying data bundles compared to a quarter a year ago,” Vodacom said on Wednesday.

Looking ahead, the group said that, while it was encouraged by the strong revenue growth in the quarter, “we remain focused on tackling the increased competition in all our geographies and also remain alert to fragile global economic conditions. Therefore our medium-term service revenue guidance of ‘low single digit’ remains unchanged.”

Must Read

Partner Content

Show comments

Trending Now

Follow Us

Vodacom shares off despite 12.2% revenue growth