During the third quarter, Vodacom Group celebrated several significant milestones, including the 20th anniversary of Vodacom Mozambique, the trailing of 5G in the Democratic Republic of Congo, and the announcement of Project Kuiper, a strategic collaboration with Amazon’s low Earth orbit satellite communications initiative.
According to Shameel Joosub, Vodacom Group CEO, Operating in Mozambique for two decades underscored Vodacom’s contribution to digital and financial inclusion in the country and across its wider footprint. The financial services business connected over 75 million customers, facilitating $1.1 billion a day in mobile money transactions. Project Kuiper, a satellite partnership with Amazon, aimed to extend 4G and 5G services to more customers in Africa, especially in areas challenging to serve through traditional methods.
Vodacom Group, including Safaricom, reached the 200 million customer mark for the first time, with 100 million customers achieved in 2018. The transformative impact on customers and economies forms a solid foundation for sustainable business growth. With the acquisition of Vodafone Egypt, Group revenue increased by 26.8% to R38.9 billion, and pro-forma revenue growth, including Egypt from April 1, 2022, was 9.6%.
In Egypt, local currency revenue grew by 31.5%, supported by robust performances in mobile data, fixed services, and financial services, with a 40.7% improvement in data traffic. South Africa saw satisfactory revenue growth of 4.0%, considering the prior year’s challenges due to load shedding.
The International business segment experienced a 25.4% increase in 4G sites, contributing to accelerated local currency revenue growth. Network investment, digital inclusion initiatives, and innovative financing models are expected to unlock growth opportunities across the eight markets.
Revenue from new services, including financial and digital services, fixed, and IoT, is on track to contribute 25-30% over the medium term. In the quarter, new service revenue exceeded 20%, totaling R6.2 billion. Financial services, the largest component, grew by 31.0% to R3.4 billion, driven by product scaling and 12.0% customer growth.
Vodacom remains Africa’s largest mobile money platform, processing close to US$100 billion in the quarter. The Group’s super-app roll-out, particularly VodaPay in South Africa, gained 4.8 million registered users, with a successful summer campaign driving strong user engagement.
Looking ahead, Vodacom is committed to delivering innovations that enhance customer value, addressing the financial constraints caused by the high cost of living. The company remains mindful of the evolving macro-economic environment and expects its resilient business model to withstand challenges.
Longer term, Vodacom aims to create immense economic value by relentlessly pursuing its purpose of connecting people for a better future. The strategic execution focuses on driving access to smartphones, financial services, healthcare, and education across all markets.