Vodacom Group, a telecommunications company based in South Africa and majority owned by the U.K.’s Vodafone Group, announced on Friday that its first-quarter revenue has increased significantly. The growth was largely driven by the strong performance of Vodafone Egypt, which the company recently acquired.
For the three months ended June 30, Vodacom Group reported revenue of ZAR35.7 billion ($2.99 billion), up from ZAR26.05 billion in the same period last year. This surge can be attributed to the acquisition of Vodafone Egypt, where financial services revenue more than doubled and successful Ramadan and summer campaigns were conducted.
Service revenue, a crucial metric in the telecom sector, grew by 44% to ZAR28.98 billion. Excluding the contribution from Vodafone Egypt, service revenue still increased by an impressive 9.8%. This growth was driven by a 3.9% rise in South Africa and a substantial 24% increase in international operations.
The integration of Vodafone Egypt has proven to be highly beneficial, as it contributed over ZAR6.8 billion to group service revenues, solidifying its strategic value.
Notably, Vodacom Group experienced a remarkable 46% growth in financial services revenue, reaching ZAR3.0 billion compared to ZAR2.1 billion last year.
Chief Executive Shameel Joosub acknowledged the challenges posed by global economic uncertainty and increased inflation. However, he emphasized the company’s commitment to delivering innovations that enhance customer value and help alleviate the cost of living pressures.
In conclusion, Vodacom Group’s strong first-quarter performance underscores its successful acquisition strategy and its continued focus on customer-centric solutions in an ever-changing economic landscape.
