Vodacom Adds 1.5 Million Customers in SA

"We remain focused on network investment as a key competitive differentiator, expanding our 4G coverage to 81.5% up from 75.9% a year ago," said Shameel Joosbu, Vodacom's CEO.

Vodacom CEO Shameel Joosub. YouTube
Vodacom CEO Shameel Joosub. YouTube

Vodacom continues to grab market share as it adds more customers, cementing its position as South Africa’s biggest mobile phone operator.

The Vodafone-owned operator informed investors on Tuesday that it has added 1.5 million new customers in its home market for the quarter ended-June 2018.

The performance was delivered despite tougher economic conditions in the country.

The South African operation posted a 4.9% rise in service revenue to R13.8 billion, supported by customer growth of 9.5% to reach 43.1 million customers.

“This was driven by our ‘Big Data’ led innovations, which contributed to robust demand for personalised bundles, offering customers better value for money,” the company said.

“We sold over 600 million bundles this quarter resulting in an effective price reduction of 10% on voice minutes and 17% for data megabytes. This is evidence of our commitment to lowering the cost to communicate.”

During the period, Vodacom launched new consumer propositions, including Vodacom Ticket, which allows customers to save up to 50% on data for social media, video, music and gaming.

The helped the company to grow data revenue by close to 10%, contributing more than 44% to service revenue.

“We remain focused on network investment as a key competitive differentiator, expanding our 4G coverage to 81.5% up from 75.9% a year ago,” said Shameel Joosbu, Vodacom’s CEO.

The company’s growth could be curtailed by the introduction of ICASA End-user Subscriber Charter Regulations.

The company expect the implementation of the ICASA End-user Subscriber Charter Regulations, in relation to out-of-bundle usage, to have a modest impact on data revenue growth.

“We expect this to be mitigated in the short term by continued uptake of data bundles and strong elasticity in demand for these services. We are encouraged by the improved performance in our International business,” Joosub said.

“We will continue to strengthen our customer value proposition across all operations as a leading digital company.”

Furthermore, Vodacom Group reported that its international operations added 1 million new customers, pushing total customers to 76.5 million.



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