Vodacom revenue hits Sh1tr mark

Tuesday May 14 2019

 

By Mnaku Mbani @mnaku28 mmbani@tz.nationmedia.com

Dar es Salaam. Vodacom Tanzania service revenue crossed the Sh1 trillion mark during the year ended March 2019 compared to Sh977 billion recorded during the year ended March 2018.

The company’s preliminary consolidated financial results show that service revenue climbed to Sh1.016 trillion, courtesy of strong growth of M-Pesa, data and messaging services.

However, net profit and total comprehensive income for the year dropped to Sh90 billion during the revised year ended in March 2019 from Sh170 billion recorded during the year ended in March 2018.

Profit before tax went down to Sh134.88 billion during the reviewed year ended in March 2019 from Sh216.3 billion recorded during the audited year ended in March 2018.

Both basic and diluted earnings per share also fell by 51 per cent to Sh40.52 during the year ended in March 2019 from Sh83.81 recorded during the year ended in March 2018.

“We will continue to drive long-term shareholder value and lead Tanzania through digital journey leveraging data analytics and segmentation, while changing lives through technology,” said Vodacom Tanzania chairman Ali Mufuruki.

He said in a statement that the acquisition of 700 MHs spectrum in the year provides a good opportunity to increase 4G coverage across the country and extend the firm’s leadership in data user experience.

During the reviewed year, the company says it invested Sh117 billion to expand 4G coverage in major cities and improve the quality of the system.

“Our focus on data monetization and acceleration of smartphone penetration through further partnership-led, low-cost smartphone campaigns remain the key drivers to help bridge the digital divide,” Mr Mufuruki said.

During the year, an additional 322 new 4G sites were deployed with fibre and high capacity microwave backhaul, further enhancing customer data experience and solidifying its lead as the fastest network in Tanzania. During the year, the mobile telecom operator, which is listed on the Dar es Salaam Stock Exchange (DSE), managed to add 1.2 million new subscribers to take to 14 million the total number of customers as at March 2019.