Vodacom attracts 2.3m new South African subscribers

By wael Hussien

Africa’s largest carrier Vodacom Group has posted a 3.9% first quarter sales gain as it added 2.3m customers to its home-country South Africa base.

The unit of Vodafone Group reported revenue of R20.7bn ($1.6bn), fuelled by a 15% rise in data sales. The Johannesburg-based company added a further 280,000 customers across its four other markets, bringing the total to 70 million people.

Related stories:

Telecoms: driving connectivity in Africa

Africa's telecoms movers and shakers

Africa's telecoms chiefs among 100 'most powerful'

On Tuesday, Vodacom took a step closer to finalising its R35 billion entry into the lucrative Kenyan mobile banking market after its minority shareholders approved its deal to acquire a 34.9% stake in Safaricom. Vodacom Group sees the expansion of mobile banking services into new markets in sub-Saharan Africa as a top priority.

Vodacom’s purchase of the Safaricom stake from UK parent company Vodafone Group gives the South African company access to the fast-growing M-Pesa platform, which processed about 891bn shillings (R110bn) in the three months to March, or more than 75% of Kenya’s total, according to the country’s telecommunications regulator. 

“The solid performance the group delivered in 2017, continued into the first quarter of the current financial year,” said Chief Executive Officer Shameel Joosub. “Although the international operations have turned the corner, currency volatility is still negatively impacting translation of these results.”

Founded in 1994, Vodacom still trails MTN Group Ltd in terms of total subscribers, but is the market leader in South Africa. Its shares gained 15% this year, valuing the company at R261bn.

 

 

 

 

Share

Featured Articles

Meet the COO: Brook Sims of MAC Diversity Recruiters

Passionate about helping others find their voice, diversity leader and COO Brook Sims talks powerful leadership, diverse teams and being a change agent

Best business books to improve leadership strategy

From strategic guides to inspiring CEO memoirs, these new books dish up plenty of principles, strategies, and anecdotes to help you become a better leader

Shoplazza founder and CEO Jeff Li, ex Baidu, on leadership

Named in Fortune China’s 40 under 40 for 2022, former Baidu head Jeff Li is the entrepreneurial founder and CEO of ecommerce platform Shoplazza

The office shifts to new way of working – workplace special

Leadership & Strategy

Trailblazer: Clorox's DEI leader Shanique Bonelli-Moore

Sustainability

The inspirational CEO story – Dean Forbes of Forterro

Leadership & Strategy