VODACOM Tanzania has posted strong performance for the period ended September with M-Pesa revenue growing by 17.2 per cent to 141.6bn/-.
Vodacom’s Managing Director, Mrian Ferrao said, 2017 has been momentous with the company’s business delivering on key strategic drivers. “Simultaneously, our business has delivered on its key strategic drivers resulting in continued commercial momen tum and robust revenue growth from data, M-Pesa and enterprise,” he said.
Apart from M-Pesa, data revenue posted 21 per cent growth to 62bn/- while service revenue grew by 6.4 per cent to 479.2bn/-. The operating free cash flow grew by 73.2 per cent to 58.4bn/- in the period under review.
Also during the period capital expenditure of 102.4bn/- expanded 4G and improved 3G data capacity in major urban centres In recent months, we completed the largest IPO in Tanzania’s history, held our first annual general meeting and declared our first dividend as a newly listed company.
He added, “These interim results are particularly pleasing as they show that our M-Pesa platform, superior data network and relevant consumer propositions have yielded a stepchange in growth within a highly competitive marketplace.
Despite the challenging business environment in Tanzania, we managed to maintain revenue and customer growth, consolidating our position as the country’s leading mobile operator and mobile financial services provider, with the fastest nationwide data network and the largest mobile money network.
This is largely due to a counter-cyclical capital investment strategy which we employed over the previous two years. This resulted in expanded coverage, placing us at the forefront of monetising mobile data opportunities.
In the first half of the cur rent financial year Vodacom invested 102.4bn/- towards network expansion. “Our network investments were largely focused on expanding capacity.
We increased 3G data capacity on over 25 per cent of our sites, mainly located in major urban centres, while launching 4G in three new cities and enhancing 4G coverage and capacity in Dar es Salaam,” he said.
He said the partnership led low-cost smartphone campaign has proven to be highly successful, evidenced by strong growth in smartphone penetration to above 27 per cent.
“As we enter the second half of the financial year, we will continue to accelerate data growth and usage through non-smartphone and low data usage customer conversions.
Through maintaining a strong focus on network experience and customer service, we continued to increase our lead over our competitors with the highest weighted net promoter score – a key indicator of customer satisfaction,” he said.