Vodacom Tanzania Limited, listed on the Dar es Salaam Stock Exchange under the share code VODA, is a Tanzanian telecommunications company providing voicemail, data and messaging to leased lines, PABX and international connectivity and remote satellite communication services.
Vodacom Tanzania Limited’s service revenue grew 3.9% to TZS497.8 billion resulting from data and M-Pesa whose revenue grew to TZS157.1 billion translating to a 10.9%. M-Pesa revenue accounts for 31.6% of service revenue. The ‘Just 4 You’ platform contributed to the 8.8% growth of the company’s customer base. Revenue grew to TZS501.1 billion by 3.1%. Vodacom’s EBIT grew 10.5% to TZS49.3 billion.
The following are excerpts from the company’s HY`19 report.
Service revenue grew 3.9% (7.6%*) to TZS497.8 billion. Strong fundamental growth was delivered through our key strategic drivers – data and M-Pesa – despite a continuation of market pricing pressure seen from the final quarter of the previous financial year. Market pricing pressure continues following the 42.1% reduction in mobile termination rate (MTR) in January 2018. Minutes included within bundles increased by approximately 75% resulting in a decline in the effective price per minute.
Through strong commercial execution we protected our customer base, achieving robust growth in active customers of 8.8%, through our ‘Just 4 You’ platform and improved monetisation of high-value and youth segments. Simultaneously, actions were taken towards improving compliance with customer registration requirements.
These actions together with delivering a superior data user experience and mobile money ecosystem to our customers, as well as obtaining significant traction from our segmented high-value, youth and coastal-focussed bundles, resulted in us maintaining our leading market share of 31.7%.
Revenue grew 3.1% to TZS501.1 billion and includes lower equipment revenue as a result of implementing a new, distributor-based, device sales model aimed at widening the device distribution using third parties.
Mobile voice revenue decreased 4.4% to TZS197.8 billion as we continue to see competitive pressure on effective on-net pricing which drove an increase in minutes of use (MoU) per month by 13.1%. We will continue using ‘Just 4 You’ and segmentation for upselling and price optimisation.
M-Pesa revenue grew 10.9% to TZS157.1 billion. June 2018 marked 10-years of Vodacom M-Pesa in Tanzania. We celebrated with a prize-giving campaign that was integral in achieving the robust 30 day active M-Pesa customer base growth of 10.2% and increasing revenue generating transactions during the period.
Competitive pressure has intensified across mobile financial services, where agent and customer incentives to use competing platforms have increased. This resulted in M-Pesa revenue growth decelerating during the pe