Vodacom profit surges 69pc on digital gains

DAR ES SALAAM: VODACOM Tanzania has posted a 69.4 per cent jump in annual net profit, driven by solid growth across its mobile money and data segments, alongside a steady expansion in its customer base.

The telecoms operator reported a net profit of 90.51bn/- at the end of March this year, up from 53.43bn/- the previous year, according to its consolidated financial results.

Service revenue grew by 20.5 per cent, supported by a 29.3 per cent rise in M-Pesa earnings and a 21.6 per cent increase in mobile data revenue.

Managing Director Philip Besiimire said the results reflected the company’s continued investment in network infrastructure, innovation and customer experience.

“This performance reinforces our leadership in Tanzania’s competitive telecom landscape,” he said recently in a statement.

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Vodacom’s customer base grew by 15.7 per cent to 22.6 million, with data users up 19.0 per cent and M-Pesa customers rising by 13.3 per cent.

The operator now holds a 31.9 per cent share of the mobile market, 34.0 per cent in mobile internet and 40.4 per cent in mobile financial services.

Cost-saving measures yielded 59.2bn/-, contributing to a 55.0 per cent increase in operating profit.

Mr Besiimire said the company would continue to invest in mobile, M-Pesa and enterprise services while exploring opportunities in fixed broadband, wholesale and the Internet of Things in line with the country’s digital economy ambitions.

He added that Vodacom invested 175bn/- in infrastructure and IT over the past year, expanding 4G coverage through 471 new sites and upgrading 286 more.

Collaboration with the Universal Communications Service Access Fund helped deliver 126 sites in underserved areas.

“Our continued investment in network infrastructure and smartphones is key to narrowing the digital divide, empowering Tanzanians and facilitating access to the digital economy,” he said.