African mobile operator Vodacom reported a 20.8 percent annual increase in its subscriber base to 50.1 million at the end of September. Revenue for the six months to September rose 8.4 percent to ZAR 34.4 billion, led by service revenues up 36.5 percent to ZAR 5.99 billion at the international operations and 1.3 percent growth in South Africa to ZAR 23.8 billion. Group EBITDA in the fiscal first half increased 14.5 percent to ZAR 12.06 billion, and the EBITDA margin improved to 35.0 percent from 33.2 percent a year ago. Net profit rose to ZAR 6.12 billion from ZAR 4.39 billion in the same period in 2011. Headline EPS increased 22.2 percent to ZAR 0.396.
Looking ahead, Vodacom said it plans to focus on growth in data services, as well as extend its M-Pesa mobile money service across its footprint in the next nine months. While the South African operations were under pressure from tough competition, the company expects to meet its full-year outlook for low single-digit revenue growth, higher EBITDA due to operational efficiencies and capex at 11-13 percent of revenue.
Capex in the first half was up 36 percent from a year ago to ZAR 4.7 billion or 13.7 percent of sales, on data expansion in South Africa and coverage improvements elsewhere. Free cash flow fell 11.8 percent to ZAR 3.43 billion. Vodacom declared an interim dividend of ZAR 3.55 per share.
