UPDATE
Slow sales report to hit Vodacom’s full-year forecasts
The market may have to lower its full-year revenue forecasts for Vodacom after the mobile operator reported a slowdown in sales in the first quarter ended June, analysts say. Vodacom said on Tuesday that group service revenues, excluding currency movements, grew 5.2% year on year in the quarter, down from 5.9% growth a year before. Relative to what the market had pencilled in for the full year, the first-quarter update "was a little light", said Chantal Marx, head of research at FNB Wealth and Investments. Group revenue on a reported basis increased 4.2% versus consensus expectations of 6.4%, Marx said. While subscriber additions in SA were strong, with numbers up 9.5%, those new subscribers spent a little less than existing customers and this weighed on average revenues per user and service revenue growth, Marx said. Also, the stronger rand dragged international service revenues lower. "The market may have been a little ambitious in its assumptions, particularly for the first quart...
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