Promotions help boost Vodacom subscribers
Vodacom has maintained its market share in SA with promotional packages and continued investment in its network with growth expected to remain steady in the medium term. Vodacom grew its local subscriber base by 690,000 during the quarter to December 2016, taking its total base in SA to 36.4-million. This is attributable to promotional data and voice packages and its strong network coverage and quality. Strong growth in data demand outstripped declining voice revenues, resulting in service revenue increase of 5.5% to R13.4bn. Overall revenue from SA rose 4.9% to R17.1bn. Vodacom group revenue was up 1.2% to R21.2bn. Mergence Investment Managers portfolio manager Peter Takaendesa said revenue growth had consistently slowed at Vodacom over the past four quarters — from 9% reported in the December 2015 quarter to 1.2% for the three months to December 2016. Takaendesa said the South African operations had remained steady, growing service revenue in mid-single digits over the same period...
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