Vodacom's international operations continue to gain ground and grow their contribution to the company's top line, but not fast enough to offset slowdowns in its home market.
In the third quarter of the year, international revenue grew 6.6% to R4 billion, and now account for about a fifth of Vodacom's total R20 billion in revenue. Stripping out currency gains, the international operations gained 0.8%.
Vodacom's international operations fared better than its home base, where revenue declined 3.1% to R16 billion. Vodacom's service income - money generated through the network - also went backwards, declining 5.8% locally to R11.9 billion in the three months to December.
Its international service revenue, conversely, gained 7.6% to R4 billion, but this was not enough to prevent overall service revenue dropping 5.8% to R15.8 billion.
Vodacom's international operations are one of its main growth drivers, as is data. The company has indicated it wants its international operations to hit 30% of income, up from 24% at half year.
Its international service revenue now accounts for 25.1% of overall service revenue, up from 22.7% a year ago. Its international customer base increased 18.6% to 29.7 million, and outgoing voice traffic grew 49.8%.
Vodacom notes the slower growth in service revenue reflects the ongoing price competition and regulatory pressures in its key markets.
"Tanzania experienced severe pricing pressures since Q3 last year, but during the course of this year pricing repair has led to more stable pricing. Growth in the DRC reduced due to slower than anticipated network rollout and competitive pressures. Mozambique and Lesotho continue to grow strongly."
International data, another growth driver, gained 24.8% to R804 million in revenue, as traffic increased threefold and active data customers gained 30.7% to 9.7 million.
Share
