{"id":63747,"date":"2014-07-24T07:32:34","date_gmt":"2014-07-24T05:32:34","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=63747"},"modified":"2014-07-24T07:37:35","modified_gmt":"2014-07-24T05:37:35","slug":"vodacom-revenue-hit-by-mtrs","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/mobile\/63747\/vodacom-revenue-hit-by-mtrs\/","title":{"rendered":"Vodacom revenue hit by MTRs"},"content":{"rendered":"

Vodacom reported a 2%\u00a0decline in\u00a0service revenue in\u00a0South Africa, in a quarterly update for the period ended June 2014,\u00a0<\/span>due to MTR cuts.<\/span><\/p>\n

The group said that revenue would have climbed 2%, had the\u00a0impact of MTRs been excluded. Service revenue for the local operator in SA amounted to R11.4 billion, with overall revenue up 1.7% to R14.8 billion.<\/span><\/p>\n

Group revenue increased 4.3% to R18.3 billion, while group service revenue increased 1.8% to R14.9 billion, up 5%, excluding cuts in mobile termination rates (MTRs).<\/p>\n

Shameel Joosub, Vodacom Group CEO, said that a\u00a0<\/span>50% cut in MTRs in April 2014 led to a 44.0% reduction in\u00a0incoming voice revenue.<\/p>\n

Active prepaid customers in SA grew 13.2% adding 997,000\u00a0customers to 27.7 million.<\/p>\n

“We achieved 14.3% growth in minutes of use by\u00a0introducing time based bundles at lower price points to cater for consumers who remain under pressure as a result of a weak
\nmacroeconomic environment,” Joosub said.<\/p>\n

Active contract customers were flat at 4.8 million.<\/p>\n

Group data revenue increased 23.2% to R3.6\u00a0billion, representing\u00a024.1% of service revenue, while group active customers grew 15.6% to 59.6 million and active data customers grew 36.7% to 25.3 million.<\/p>\n

“In the past year we’ve added more than eight million new customers, taking our active customer base to just shy of 60 million,”\u00a0Joosub said.<\/span><\/p>\n

“In South Africa we executed well, operationally, and grew our customer base by 11%, but revenue was impacted by the dramatic\u00a0decrease in MTRs.”<\/p>\n

“We continued with our price transformation strategy, bringing down the overall effective price per minute by 25.3% to 68 cents and driving an increase in outgoing voice traffic of 26.1%,” he said.<\/p>\n

The elasticity effect, the CEO pointed out, was even more notable on data, with a\u00a030.3% reduction in the average effective price per megabyte, offset by a 70.1% increase in data traffic.<\/p>\n

The number of active smartphones and tablets on Vodacom’s\u00a0network in SA increased
\n19.3% to 8.0 million devices.<\/p>\n

The average monthly data usage on smartphones increased 44.5% to 312 MB per device and usage on\u00a0tablets increased 43% to 848 MB per device, the group said.<\/p>\n

Vodacom said it\u00a0added a further 473 LTE sites in the quarter, an increase of more than 50%.<\/p>\n

“On top\u00a0of this we added another 293 3G sites, and 74.5% of our sites are now connected using our own self-provided high capacity\u00a0transmission,” Joosub said.<\/p>\n

Vodacom highlighted the 51% growth in its M-Pesa service to\u00a06.6 million \u00a0customers.<\/p>\n

More on Vodacom<\/h3>\n

Vodacom acquires Neotel for R7 billion<\/strong><\/a><\/p>\n

Vodacom ups revenue by 8%<\/strong><\/a><\/p>\n

Vodacom\u2019s fibre-to-the-home blueprint<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Vodacom has reported a decline in service revenue in South Africa due to the mobile termination rate cuts which took place in April 2014.<\/p>\n","protected":false},"author":9,"featured_media":38329,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[34],"tags":[26,3403,27],"class_list":["post-63747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","tag-headline","tag-shameel-joosub","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/63747","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\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=63747"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/63747\/revisions"}],"predecessor-version":[{"id":63763,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/63747\/revisions\/63763"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/38329"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=63747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=63747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=63747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}