PRESS RELEASE: Vodacom interim results for the six months ended 30 September 2012
Improved revenue and margins drive strong HEPS growth
Group service revenue up 6.9% (5.5%*)
Group EBITDA up 14.5% (13.0%*)
SA EBITDA margin increased 2.0ppts to 37.9%
Headline earnings per share (‘HEPS’) up 22.2% (12.5%1) to 396 cents
36.5% increase in interim dividend per share to 355 cents
Compelling value propositions support voice business
Group active customers increased 20.8% to 50.1 million
Group voice revenue up 7.3% (5.2%*) to R17.6 billion
Outgoing Group voice traffic up 16.1%
Strong demand for data services
Group data revenue up 20.2%, now 15.9% of service revenue
42.3% increase in Group active data customers to 17.6 million
35.5% increase in active smartphones in South Africa
Excellent International performance
Service revenue up 36.5% (32.4%*), contributed 20.2% (16.9%*) to Group service revenue
EBITDA up 92.3% (76.7%*), contributed 10.5% to Group EBITDA
EBITDA margin increased to 20.6% (25.6%*) from 14.6% (19.0%*)
47.1% of Tanzania active customers now using M-Pesa
Network leadership remains a key priority
Group capex increased 36.1% to R4 713 million
22.7% increase in number of Group 3G base stations
First to launch LTE in SA and 3G services in DRC
*Represents normalised growth excluding foreign exchange gains/losses and at a constant currency
1. Refer to note 3 for change in the basis of reporting customers
Shameel Joosub, Vodacom Group CEO commented:
“This was a great set of results with improvements in the traditional voice business and strong performances in the data and International segments lifting overall revenue growth.
We also controlled costs well, with the end result that despite aggressive competition and an inflationary cost environment, we actually managed to increase margins.
Thanks to our proactive added value approach, particularly the use of voice and data promotions, traffic growth in South Africa more than offset the impact of lower prices. Our strategy of driving smartphone penetration and data usage is working well, with the number of active smartphones in South Africa growing 36% and the average amount of data used by each of those handsets up 46%. Across the Group, only 35% of our active customer base is using data so we’re still very much at the beginning of this growth trend.
The International operations performed extremely well with strong commercial propositions and the benefits of scale resulting in significantly higher margins.
Very importantly, underpinning the growth in all areas of the business was an increase in investment. Network leadership is a crucial part of Vodacom’s strategy and a key differentiator. We increased the number of 3G base stations in the Group by more than 22% and thanks to the foundations laid over the past few years we were the first to launch LTE services in South Africa.”
Please refer to the attached document for more details.
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