Vodacom Group said it signed up 5.1 million new subscribers in the third quarter ending 31 December, reaching a total 61.1 million at the end of 2014. Compared to the end of September, the operator gained 1.31 million customers at its international activities, while losing 1.23 million in its home market South Africa. Active data customers grew by 16.4 percent year-on-year to 26.5 million.
Group revenue for the fiscal third quarter to December decreased 1.1 percent, or 2.2 percent on an organic basis, to ZAR 19.99 billion. Organic service revenue fell 3.9 percent to ZAR 15.82 billion. Excluding the impact of the 50 percent cut in mobile termination rates in South Africa, group revenue increased 1.5 percent and service revenue rose 0.6 percent.
Group CEO Shameel Joosub said despite difficult trading conditions, the mobile operator continues to invest in networks and the business. He said Vodacom was continuing to work through the approvals process for the acquisition of Neotel. If the transaction goes through, the ambition is to add at least 1 million fibre connections to homes and businesses in South Africa.
At the operator's international activities, service revenue grew 7.6 percent to ZAR 3. 97 billion and 25.1 percent of the total (Q3 2014: 22.7%). The international customer base increased 18.6 percent to 29.7 million, and outgoing voice traffic grew 49.8 percent.
The slower growth in service revenue reflects the on-going price competition and regulatory pressures in key markets. Tanzania experienced severe pricing pressure 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. M-pesa revenue grew 28.2 percent, contributing 9.4 percent of service revenue. M-pesa customers increased 29.7 percent to 7.6 million, reflecting strong uptake in all markets.
