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South Africa's Vodacom Q1 Revenue Flat on Currency Changes
South Africa based Vodacom has reported that its revenue and service revenue for the three months ended 30 June 2010 increased in constant currency by 3.0% and 3.1% respectively, with continued robust performance in South Africa and a 43.2% growth in Group data revenue. The South African rand strengthened against all the other functional currencies in the international operations, resulting in lower reported Group revenue growth of 0.7% and service revenue growth of 0.6%. The South African mobile operations contributed 87.2% of Group revenue.
Pieter Uys, Chief Executive Officer, commented: "This was a positive start to our financial year with overall Group service revenue increasing 3.1% in constant currency. Our continued focus on broadband leadership paid off with Group data revenue growing 43.2%."
"Excluding the impact of mobile termination rates ('MTRs'), South Africa's service revenue growth of 8.2% reflected robust growth in data revenue and gains on the voice side. Lower MTRs had a negative impact of approximately R393 million on revenue in the quarter. We pressed ahead with actions to deliver greater value to customers launching prepaid promotions and reducing data and voice contract tariffs."
Group customers increased 1.1 million in the quarter, excluding the reduction of 3.3 million call-forward SIMs in South Africa on 1 April 2010, resulting in total Group mobile customers of 37.7 million at 30 June 2010.
The South African customer base declined by 3.1 million to 23.2 million in the quarter mainly due to the change in the disconnection policy of 13 months to seven months for call-forward SIMs. Excluding the impact of the disconnection policy, prepaid customers declined by 11.9% year on year due to RICA. Prepaid ARPU increased 19.7% to R79 largely as a result of the lower customer base.
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