Vodacom Group, in collaboration with Safaricom, has achieved a significant milestone by surpassing 200 million subscribers, marking a doubling of its customer base since 2018. This achievement was disclosed in the telecommunications group’s fiscal third-quarter update, covering the period ending December 31, 2023.
Of the 200 million customers, 37.5%, equivalent to 75 million users, engage in Financial Services, notably through M-Pesa, which continues to dominate the payment landscape in Kenya. Notably, Egypt experienced a remarkable 55.5% growth in its financial services customers, reaching 7.5 million individuals.
Vodacom emphasised its commitment to expanding its super-app across its footprint, with a particular focus on enhancing user engagement. The group reported 4.8 million registered users for VodaPay in South Africa, with a successful summer campaign driving robust engagement on the platform.
Despite being Africa’s largest mobile money platform by transaction value, processing close to US$100 billion in the quarter, Vodacom’s total subscriber count trails behind main competitor MTN Group, which reported over 290 million subscribers as of September 2023.
The subscriber growth of Vodacom has been catalyzed by strategic corporate deals, such as the acquisition of Vodafone Egypt. This transaction contributed to a nearly 27% increase in group revenue, reaching R38.9 billion in the December quarter.
Vodacom Group CEO, Shameel Joosub, acknowledged the transformative impact on customers and economies in the countries of operation. The acquisition of Vodafone Egypt played a pivotal role in accelerating revenue growth for the company.
While South Africa reported a 1.9% growth in service revenue, the overall group service revenue, including contributions from Vodafone Egypt, rose by 8.8% on a pro forma basis. Vodacom attributed South Africa’s relatively slow growth to a strong comparative period a year ago.
Despite facing intense pressure on its share price over the past year, Vodacom’s shares experienced a nearly 2% increase following the financial update on Friday, reaching R97.21 apiece shortly after 9.30 am in Johannesburg.
Looking forward, Vodacom remains committed to navigating the evolving macro-economic environment and ensuring its business model demonstrates resilience. The company aims to deliver innovations that enhance customer value and alleviate cost-of-living pressures amidst financial constraints faced by customers.
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