JSE-listed Vodacom expects to invest almost R4.7 billion in its network in the second half of the year, as it seeks to deepen coverage and improve customer experience.
The group spent R4.7 billion in the six months to September, of which R1 billion went into its international operations. CEO Shameel Joosub says the level of spending will come off slightly in the second half of the year, although it expects to invest close to the top end of its guidance of between 11% and 13% of revenue.
In the first half of the year, Vodacom reported group service revenue up 6.9%, to R29.7 billion, ahead of its guidance of low single digits. Total active customers leapt 20.8%, to 50.1 million, and headline earnings per share were 396c, compared with 324c a year ago.
Voice revenue across the group gained 7.3%, to R17.6 billion, while data grew 20.2% to contribute 16% of Vodacom's service revenue.
Expanding the base
In SA, data revenue grew 13.5% year-on-year and the group saw a 42.5% growth in data traffic. It now has 13.3 million active data customers, a 21.9% gain year-on-year.
Vodacom's international data subscribers grew 128% off a low base to 4.3 million - out of a total of 19.2 million international customers. Data revenue gained 140.7% and is seen as a "tremendous" opportunity.
Joosub says the investment in SA should be at around R7 billion for the next few years going forward, as it aims to differentiate the network and invest in customer experience. He adds that Vodacom wants to have data available wherever it has a voice tower and is seeking 25 million data customers by 2014.
Data is core to Vodacom's future growth strategy, says Joosub. He adds that the company now has 6 201 3G base stations, a 25% year-on-year improvement, and has self-provided at 5 077 sites in SA, some 55% of all towers. He says Vodacom plans another 1 000 3G towers this year.
Vodacom also recently launched 3G in the Democratic Republic of Congo and was the first company to offer commercial long-term evolution in SA. Joosub says the company has 200 towers live on the latest technology in Johannesburg, Durban, Pretoria and Cape Town, and plans to light up 500 by year-end.
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