Tanzania: Vodacom Profit Increases By 60%

Tanzania: Vodacom Profit Increases By 60%

Vodacom Tanzania net profit has increased by twothird to 47.6bn/- thanks to M-Pesa revenue growth and data business in a year ending March.

The firm, leading telecom in the country, projected during IPO prospectus that its profit for this year will be 47.38bn/- up from 29.1bn/- or a change of 62.5 per cent, instead went up 63.4 per cent.

The firm handsome profit came at time of concluding its 476bn/- initial public offer (IPO) the biggest in the history of Dar es Salaam bourse. Vodacom Managing Director Ian Ferrao said that M-Pesa revenue grew 11 per cent to 249.6bn/- pinned by an increase of 936,000 active customers.

“In particular our continued investment in data, M-Pesa and enterprise paid dividends… .” Mr Ferrao said yesterday in a statement. The MD said despite negative impact on excise duty imposed last July, M-Pesa delivered strong growth throughout the year.

“Looking ahead, we aim to maintain the encouraging momentum of the second half of the past year by continuing focus investments across our key strategic drivers–data, M-Pesa, and enterprise… ,” Mr Ferrao said.

 The telecom expansion of its mobile money ecosystem has invoked an 18 per cent rise in the number of transaction to reach over 8.0 million customers who make up 63 per cent of Vodacom active customer base.

The results enabled earnings per share to grow 63 per cent to 28.3bn/- for the year ending March. Vodacom share price at IPO was at 850/-. Vodacom projects its net profit in 2018 will reach 95.86bn/- a change increase of 102.8 per cent.

The growth in 2018, according to prospectus, will be fuelled by data demand as smart devices become more accessible while 3G and 4G networks reach more customers.

Currently high speed 4G covers Dar es Salaam but plans are afoot to explore opportunities for spectrum acquisition which will enable the roll-out of the 4G into other regions.

Source: Tanzania Daily News