Vodacom six-month net profit up 8.4% year-on-year

Vodacom posted a rise in its first half revenues and profits that were at the upper end of its earlier guidance.

The company said revenues rose by 6.6 per cent to ZAR36.7 billion (US$3.67 billion) in the six months to the end of September. Growth in data revenue of 20.6 per cent and positive growth in prepaid segment revenue was offset by a 23.6 per cent decline in interconnect revenue coupled with poor performance by the independent service providers.

Strong growth in customers and benefits from accelerated investment programme in Mozambique supported service revenue growth of 8.7 per cent in the international operations. International operations now contribute 21.6 per cent of service revenue up from 20.2 per cent a year ago.

Net profit rose by 8.4 per cent to ZAR6.63 billion. Debt amounted to ZAR11.96 billion at the end of the period, a rise of 3.4 per cent year-on-year. During the period the group obtained two additional loans with a combined value of ZAR4.5 billion from Vodafone, which owns 65 per cent of the company to finance capital expenditure and working capital requirements and to repay maturing long term debt.

The group’s active customers increased 9.7 per cent to 53.8 million; with net connections of 949, 000 for South Africa and 2.3 million in the international operations for the six months period.