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Vodacom Group has posted a 4.6% revenue growth totalling R102.7 billion, the company announced in its year-end financial results for 2021.
Group CEO Shameel Joosub, attributed revenue growth to new services which include digital and financial, fixed and IoT.
“I am pleased with the growth of our Group financial services and Internet of Things divisions in an increasingly difficult trading environment. The strong operating results supported a 3.0% (4.6%*) increase in full year dividend to 850 cents per share, a testament to having the right strategy in place and the manner in which the Group and its employees adapt to crises while at the same time resolutely delivering on our purpose-led ambitions.”
Vodacom’s EBITDA increased 1.5% (2.1%) to R39.9 billion whilst operating profit grew 5.4%, which the company says was supported by a recovery in International profitability.
The company said its financial services business is integral to its business model as it is the largest component of new services revenue and a clear strategic priority.
Revenue reached R7.6 billion in the period, up 10.8% (14.4%) and customers, including for Safaricom have reached 60.6 million to date.
Vodacom said it sees strong growth potential for customer adoption across its existing footprint and has set a target of 75 million financial services customers by FY25.
The company has also seen a high adoption rate of its VodaPay app since its launch in South Africa in October 2021. The super-app has attracted 2.2 million downloads and 1.6 million registered users.
“VodaPay will be instrumental in our quest in connecting the next 100 million African customers so that no one is left behind,” added Joosub.
At the same time M-Pesa, across Vodacom markets, has grown to serve more than 47.1 million customers and 550 000 merchants through 510 000 agents in the DRC, Kenya, Lesotho, Mozambique and Tanzania. M-Pesa processes over 52 million transactions daily with a value of US$324.6 billion during the year.
In the period, Vodacom also added 5.9 million customers, to serve a combined 129.6 million customers across the Group, including Safaricom.
“We remain focused on providing opportunities to enhance our relationship with the 129.6 million customers we serve across our footprint,” said Joosub.
The company is looking to conclude proposed acquisitions for stakes in Vodafone Egypt and Community Investment Ventures Holdings.
In addition to focusing on the closure of the proposed acquisitions, and the expansion into Ethiopia, Vodacom said its priorities in the year ahead will include scaling our super-apps, deeper penetration of financial services.
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