THE Vodacom Group’s latest quarterly results show that group service revenue grew by 3.9 percent (4.2 percent), driven by strong growth in South Africa and improved growth from our International operations.
South Africa service revenue was up 5.4 percent reflecting strong demand for new services and connectivity while International service revenue declined by 1.4 percent (-0.3percent*), with M-Pesa supporting a notable sequential improvement in the year-on-year decline of normalised service revenue.
Vodacom Group CEO Shameel Joosub said in the wake of a second wave of COVID-19 infections across most of the world, Vodacom Group remains committed to assisting governments curb the spread of the pandemic whilst at the same time focusing on the economic recovery in each of the markets it operates through the execution of a six-point plan.
“This plan includes expanding network coverage and resilience, accelerating support to governments, enhancing digital accessibility and digital adoption, supporting the strategies of our customers as they adapt to the “new normal” and promoting financial inclusion.” said Mr Joosub.
In South Africa, 23 million customers took advantage of discounts and the greater value offered through a highly successful summer “ShakeOff 2020” campaign and our recently launched VodaBucks loyalty programme with an additional 1.45 million customers connecting to the network during the quarter.
Supported by a significant increase in demand for its Airtime Advance product and a healthy increase in insurance policies, Vodacom Financial Services business remains a very strong performer having increased revenue by 24.3%, as the business continues to scale.
“Our partnership with Alipay will add new dimensions to our Financial Services’ proposition and in particular VodaPay, which will become our single lifestyle super app,” he said.
The Group service revenue increased 4.2 percent, on a normalised basis, supported by its ongoing investment into an ecosystem of connectivity, financial and digital services.
Mr Joosub said the ecosystem approach promotes engagement with customers and creates more opportunities to add value. In South Africa, service revenue grew 5.4%, with both our Consumer and Vodacom Business segments contributing to growth, despite our material data price reductions on 1 April 2020.
He added that normalised growth across International operations showed a marked improvement in the quarter.