Vodacom Group (Pty) Ltd today announced that it has declared R1.6 billion in dividends to shareholders after reporting strong profit and customer growth in the six-month period ended 30 September 2004.
Vodacom showed a 40% growth in group total customers to 13.5 million. This reflected impressive customer growth across the group`s operations in SA, Tanzania, the Democratic Republic of Congo, Mozambique and Lesotho.
The South African customer base increased by 33.1% to 11.3 million compared to the same period in 2003. Most of the growth in customers came from the prepaid market, which increased by 33.5% to 9.7 million customers although the contract market showed similar strength, growing by 32% to 1.6 million customers.
Group revenue increased by 20.3% to R13.6 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) increased 13.4% to R4.2 billion. Profit before tax went up 18.7% to R2.6 billion.
Alan Knott-Craig, Group Chief Executive Officer of Vodacom, said: "The strong growth in customers resulted from the 2.7 million new gross connections in SA coupled with low churn in both the contract and prepaid customer base."
He added that Vodacom`s focus on local customer upgrade and retention policies drove contract churn to its lowest level in the company`s history at 8.6% compared to the previous 10.8%. Prepaid churn dropped from 44.1% to 21.9% mainly due to changes in the disconnection policy governing prepaid customers, although this was expected to increase to about 35% by year-end.
Data revenue increased 14.5% to R586 million mainly due to SMS traffic growth.
Other African operations showed increased growth and maintained leadership market positions particularly Vodacom Tanzania reporting an increase in customer base of 76% to 952 000 and Vodacom Congo up 97.2% to 903 000. Vodacom Lesotho maintained its 80% market share with 122 000 customers whereas Vodacom Mozambique is steadily gaining ground with 164 000 customers or 24% market share in just less than a year in operation.
Knott-Craig said the company`s recently announced partnership with its 35% shareholder Vodafone would give Vodacom access to the world`s biggest mobile community, research and development and enable Vodacom to drive revenues from its 3G network.
"This partnership will give Vodacom a distinct competitive advantage in the mobile arena," concluded Knott-Craig.
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