{"id":29525,"date":"2013-01-10T01:59:33","date_gmt":"2013-01-09T23:59:33","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=29525"},"modified":"2013-01-10T09:10:10","modified_gmt":"2013-01-10T07:10:10","slug":"vodacom-profits-beats-vodafone-uk","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/mobile\/29525\/vodacom-profits-beats-vodafone-uk\/","title":{"rendered":"Vodacom profits beat Vodafone UK"},"content":{"rendered":"

Vodafone<\/a>‘s biggest asset in Africa, Vodacom Group<\/a>, is bringing in a bigger profit than the mobile network giant’s UK operations.<\/p>\n

According to Vodafone’s annual report in 2012, Vodacom is shown as a formidable profit powerhouse, trumping Vodafone UK’s profit margin by almost \u00a3500 million.<\/p>\n

But while Vodacom – Vodafone’s biggest asset in Africa –\u00a0competes\u00a0well against the company’s European operations, the general Middle-East and Africa (MEA) region is still dwarfed by Vodafone’s operations in Europe.<\/p>\n

Globally, Vodafone serves in excess of 407 million customers, with Vodacom Group accounting for more than 50 million of those subscribers.<\/p>\n

Speaking to Bloomberg, Vodafone MEA head, Nick Read<\/a>, said that profit from Africa could overtake that from all of southern Europe in as little as three years, noting that earnings in Africa were expanding 50%, annually, in some countries.<\/p>\n

\u201cThere\u2019s a massive opportunity in penetration that we need to drive forward on,\u201d Read told Bloomberg.<\/p>\n

\u201cEveryone in Africa wants to be on Facebook<\/a>. They want e-mail. They want social networks.\u201d<\/p>\n

Africa will be the mobile phone industry\u2019s fastest-growing region by subscribers over the next five years as companies build advanced networks and customers switch to broadband, according to the report.<\/p>\n

In comparison, in November 2012,\u00a0Vodafone wrote down the value of its businesses in Spain and Italy by as much as \u00a35.9 billion<\/p>\n

\n\n\n\n\n\n\n
Region<\/strong><\/td>\nOperating profit (\u00a3m)
\n<\/strong><\/td>\n<\/tr>\n
Europe<\/td>\n5,726<\/td>\n<\/tr>\n
EMEA<\/td>\n1,272<\/td>\n<\/tr>\n
Other<\/td>\n4,820<\/td>\n<\/tr>\n
Total<\/strong><\/td>\n11,818<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Operating profit from the European region<\/h3>\n
\n\n\n\n\n\n\n\n
Country<\/strong><\/td>\n2011 (\u00a3m)<\/strong><\/strong><\/td>\n2010 (\u00a3m)<\/strong><\/strong><\/td>\n% Change<\/strong><\/strong><\/td>\n<\/tr>\n
Italy<\/td>\n1,903<\/td>\n2,107<\/td>\n-9.68<\/td>\n<\/tr>\n
Germany<\/td>\n1,548<\/td>\n1,695<\/td>\n-8.67<\/td>\n<\/tr>\n
Other<\/td>\n1,012<\/td>\n1,084<\/td>\n-6.64<\/td>\n<\/tr>\n
Spain<\/td>\n915<\/td>\n1,310<\/td>\n-30.15<\/td>\n<\/tr>\n
UK<\/td>\n348<\/td>\n155<\/td>\n124.51<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Operating profit from the MEA region<\/h3>\n
\n\n\n\n\n\n
Country<\/strong><\/td>\n2011 (\u00a3m)<\/strong><\/strong><\/td>\n2010 (\u00a3m)<\/strong><\/strong><\/td>\n% Change<\/strong><\/strong><\/td>\n<\/tr>\n
Vodacom<\/td>\n827<\/td>\n520<\/td>\n59.03<\/td>\n<\/tr>\n
Other<\/td>\n430<\/td>\n335<\/td>\n28.35<\/td>\n<\/tr>\n
India<\/td>\n15<\/td>\n-37<\/td>\n–<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Vodacom in Africa<\/h3>\n

In November 2012, Vodacom reported an 8.4% rise in revenue for the six months ended September 2012, to R34.43 billion.<\/p>\n

This was spurred on by the continued strong demand for data services and further voice penetration growth in its international operations, the group said.<\/p>\n

Service revenue jumped to R29.68 billion, from R27.75 billion in the same period in 2011, with operating profit rising to R8.97 billion, from R7.3 billion.<\/p>\n

Vodacom highlighted an operating profit margin of 26.1%, from 23% before.<\/p>\n

Speaking to BusinessTech after the reporting, Vodacom CEO Shameel Joosub<\/a> divulged the company’s plans to further expand and tap into the lucrative Afrian market.<\/p>\n

Joosub said that Vodacom would adopt a two-pronged approach in Africa, namely, to continue to drive further penetration within the markets it is currently in, and seek new opportunities \u201cmore proactively\u201d outside its current operations.<\/p>\n

Aside from its headquarters in South Africa, Vodacom has additional networks in Tanzania, the Democratic Republic of Congo, Mozambique and Lesotho.<\/p>\n

Additional sources: Bloomberg<\/a>, Vodafone<\/a>
\n<\/a><\/small><\/p>\n

More Vodacom news<\/h3>\n

Vodacom shares up 2.3% on H1 results<\/strong><\/a><\/p>\n

We have appetite to grow: Vodacom<\/strong><\/a><\/p>\n

Vodacom LTE tested, and it\u2019s fast<\/strong><\/a><\/p>\n

Vodacom launches LTE in South Africa<\/strong><\/a><\/p>\n

First commercial LTE call in South Africa<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Vodacom is bringing in more profit than its parent company’s home-base operations in the UK.<\/p>\n","protected":false},"author":10,"featured_media":23325,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[3031,26,4967,359,27,737],"class_list":["post-29525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","tag-emea","tag-headline","tag-nick-read","tag-profit","tag-vodacom","tag-vodafone"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/29525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=29525"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/29525\/revisions"}],"predecessor-version":[{"id":29545,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/29525\/revisions\/29545"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/23325"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=29525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=29525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=29525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}