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Lesotho, Mozambique deliver for Vodacom

By , IT in government editor
Africa , 18 May 2015

Lesotho, Mozambique deliver for Vodacom

The Vodacom Group's Lesotho and Mozambique business operations delivered "solid performances" for the period ended 31 March 2015, the company said on Monday.

The South African headquartered mobile operator released its annual results, which showed that group revenue increased by 2.1% to R77 billion.

In the results statement Vodacom noted that international service revenue grew by 10.0% to R15.291 billion.

Including South Africa Vodacom operates in five African nations namely, Lesotho, Tanzania, Mozambique and the Democratic Republic of Congo (DRC).

Vodacom also experienced strong customer growth of up to 13.7% to reach 29.5 million customers for its international businesses.

The Vodacom Group has said its overall customer base now stands at 61.1 million.

According to the Vodacom statement the company encountered challenges in Tanzania and DRC as a result of aggressive pricing pressures.

The telco said the suspension of data and SMS services in the DRC as a result of unrest, negatively affected performance in Q4.

Shameel Aziz Joosub, Vodacom Group chief executive officer commented, "... In South Africa we faced major cuts in mobile termination rates ('MTRs'), a weak economic environment, exchange rate volatility and increased price competition. In Tanzania and the DRC, pricing pressure impacted our performance..."

"In our international operations, service revenue was up 10.0% (4.5%*). Lesotho and Mozambique performed well, while Tanzania and the DRC faced stiff pricing competition," said Joosub.

Vodacom also noted that its mobile money platform M-Pesa continues to gain momentum in all markets, with active customers of 8 million an increase of 34.2% and revenue growth of 27.5%.

The company's international data revenue also increased by 32.9% with data contributing 19.9% of service revenue.

Active data customers grew by 28.7% to 9.9 million, representing 33.4% of the customers.

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