South African mobile operator Vodacom Group reported an 8.9 per cent rise in annual earnings yesterday and postponed issuing medium-term forecasts due to the uncertain economic outlook as effects of the coronavirus pandemic unfold.
“The past year has been characterised by strong customer growth - we now connect 116 million customers across the group, including Safaricom – and the benefits of prudent portfolio diversification,” Group Chief Executive Shameel Joosub said in a statement.
In South Africa, growth in the second half of the year ended March 31 more than offset the decline in service revenue during the first, supported by an increase in data elasticity and usage following sharp data price reductions announced in the first quarter.
Vodacom also improved its fibre roll-out in the second half of the year, more than doubling the total number of homes and businesses connected to 61,427.
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The increased data traffic, a 21.5 per cent jump in financial service revenue and a 6.7 per cent rise in enterprise service revenue led to service revenue in South Africa rising 2.3 per cent in the year ended March 31.