Major highlights:
* Group revenue growth of 18.7% to R23.5 billion
* Net profit growth of 36.9% to R3 billion
* Shareholder distributions of R2.1 billion
* Group data revenue growth of 58.9% to R1 billion
* Group total customers up 29.7% to 11.2 million
* Vodacom Mozambique launched December 2003
* Acquired 51% of Smartphone SP in March 2004
In the year of celebrating its 10th anniversary in business and the country`s first decade of democracy Vodacom Group (Pty) Ltd, SA`s leading cellular operator, today announced a strong set of results.
The company reported revenue growth of 18.7% to R23.5 billion and operational profit increase of 20.9% to R5.2 billion for the year ended 31 March 2004. Net profit jumped 36.9% to just over R3 billion.
Alan Knott-Craig, Group CEO of Vodacom, attributed the company`s performance to continued customer growth in the South African operation, which rose 23.5% to 9.7 million. Vodacom`s total customers grew 29.7% to 11.2 million.
The South African operation remains the biggest contributor to Vodacom Group`s revenue growth and accounted for 93.6% of the growth in revenues in the reporting period.
Other African operations in Tanzania, Lesotho, the Democratic Republic of Congo and Mozambique reported a combined 21.2% growth in revenue to R1.5 billion, also driven by very strong customer growth but negatively affected by the strong rand.
Vodacom has retained its 54% market share in SA where its coverage reaches more than 95% of the population.
The network transmitted 2 billion SMSs in the past year, which immensely contributed to the 58.9% growth in data revenue to over a billion rand. Data revenues now make up 4.4% of the total group revenue.
Leon Crouse, Vodacom`s Group Finance Director, said the company`s total cumulative capital expenditure increased by 13.1% to R20.7 billion, after it invested R2.9 billion in the current financial year. Of this, R2.8 billion was invested in cellular infrastructure and related IT and billing systems.
The group`s consolidated net debt position has decreased considerably to R463 million as at 31 March 2004 due to strong cash flow from SA and a reduction in capital expenditure.
"This reflects the group`s net debt position before payment for 51% of the equity of Smartphone SP (Pty) Ltd, and settlement of the R1.5 billion dividend payable at the end of May 2004," said Crouse.
Knott-Craig concluded: "We continue to be confident of our success in all of our operations and look forward to an exciting next decade of growth and innovation."
Share
