1. Homepage
  2. Equities
  3. South Africa
  4. Johannesburg Stock Exchange
  5. Vodacom Group Limited
  6. News
  7. Summary
    VOD   ZAE000132577


End-of-day quote Johannesburg Stock Exchange  -  2022-06-23
135.11 ZAR   +1.40%
06/22VODACOM : Change in directorate
06/22VODACOM GROUP LIMITED : Ex-dividend day for final dividend
06/21Vodacom Group Limited Announces Resignation of Anne O'leary as Non-Executive Director, Effective 16 September 2022
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

South Africa's Vodacom targets a quarter of group revenue from digital, financial services in medium term

05/16/2022 | 02:21am EDT

* Targets new services contribution of 25%-30%

* Full year operating profit growth of 28.23 bln rand

* Group service revenue growth boosted by fintech, digital

* Launching in Ethiopia later this year

JOHANNESBURG, May 16 (Reuters) - South Africa's Vodacom Group expects new digital and financial services to generate over a quarter of group service revenue in the medium term, its chief executive said on Monday as the telecom operator reported a rise in full year operating profit.

Vodacom, like its peer MTN Group, has been transforming its business from just providing telecom services to building a technology company that now enables its 129.6 million customers to also lend money, make payments, shop online and control appliances at home using smartphones.

It is betting on millions of Africans that still don't have access to financial services and on the continued growth of smartphone adoption and internet penetration on the continent.

Vodacom's aggressive focus on new services, which include digital and financial services, fixed broadband and internet of things (IoT) - the concept of connecting household devices to the internet - supported its normalised group service revenue growth of 4.6% to 79.9 billion rand ($4.91 billion) in the year ended March 31.

Revenue from financial services, the largest component of sales of new services, jumped 14.4% to 7.6 billion rand. That growth was driven by strong adoption of Vodacom's South African "super-app", VodaPay - which allows users to pay for bills and shop from various online stores in the app using their smartphones - and by continued growth of its M-Pesa mobile money service.

Since its launch last October, VodaPay has attracted 2.2 million downloads and 1.6 million registered users, Vodacom Group Chief Executive Shameel Joosub said in a statement.

IoT was up 32.1%, supported by products in agriculture and smart infrastructure. On aggregate, these new services amounted to 14.3 billion rand and contributed 17.9% to group service revenue, he added. The group is targeting a contribution of 25%-30%.

"Each year we see a step up of the contribution of these new services and part of that will be underpinned by the launch of e-commerce through the super app and capabilities of VodaPay in all our markets," Joosub told a media conference.

Vodacom is finalising asset acquisitions of Vodafone Egypt from parent company Vodafone and buying fibre assets in South Africa.

Through a consortium led by Kenyan telecoms operator Safaricom, the parties including Vodacom plan to launch in Ethiopia by this year after a delay due to a conflict in northern Ethiopia that broke out in 2020. Vodacom partly owns Safaricom.

"We are quite encouraged by the fact that things are getting better on the ceasefire and so on. We're busy on the rollouts at the moment and we'll launch later this year," Joosub said.

Egypt and Ethiopia, each with populations of over 100 million people, "provide transformational opportunities for financial services," he added.

Vodacom reported a normalised operating profit of 28.23 billion rand for the year, up from 27.65 billion rand in 2021, while headline earnings per share rose by 3.4%.

($1 = 16.2022 rand) (Reporting by Nqobile Dludla; Editing by Tom Hogue, Sherry Jacob-Phillips and Susan Fenton)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
DOW JONES AFRICA TITANS 50 INDEX 1.64% 464.41 Real-time Quote.-14.78%
MTN GROUP LIMITED 2.15% 141.82 End-of-day quote.-16.92%
S&P AFRICA 40 INDEX 1.90% 150.41 Real-time Quote.-15.64%
SAFARICOM PLC -1.70% 23.1 End-of-day quote.-39.13%
VODACOM GROUP LIMITED 1.40% 135.11 End-of-day quote.0.36%
VODAFONE GROUP PLC 0.36% 126.96 Delayed Quote.12.68%
06/22VODACOM : Change in directorate
06/22VODACOM GROUP LIMITED : Ex-dividend day for final dividend
06/21Vodacom Group Limited Announces Resignation of Anne O'leary as Non-Executive Director, ..
06/20VODACOM : Passing of a director and change in board and committee functions
06/10VODACOM : No change statement and notice of annual general meeting
06/08Telecom operators in Congo face $180 million tax hit
06/02Safaricom's M-Pesa, Visa offer virtual card for global transactions
05/16TRANSCRIPT : Vodacom Group Limited, 2022 Earnings Call, May 16, 2022
05/16Vodacom Group Limited Reports Earnings Results for the Full Year Ended March 31, 2022
05/16South Africa's Vodacom targets a quarter of group revenue from digital, financial servi..
More news
Sales 2022 103 B 6 518 M 6 518 M
Net income 2022 17 615 M 1 115 M 1 115 M
Net Debt 2022 34 614 M 2 190 M 2 190 M
P/E ratio 2022 13,4x
Yield 2022 6,37%
Capitalization 229 B 14 475 M 14 475 M
EV / Sales 2022 2,56x
EV / Sales 2023 2,22x
Nbr of Employees 7 642
Free-Float 33,2%
Duration : Period :
Vodacom Group Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends VODACOM GROUP LIMITED
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 10
Last Close Price 135,11 ZAR
Average target price 148,60 ZAR
Spread / Average Target 9,98%
EPS Revisions
Managers and Directors
Mohamed Shameel Aziz-Joosub Director
Raisibe Kgomaraga Morathi Chief Financial Officer & Executive Director
Sakumzi Justice Macozoma Chairman
Dejan Kastelic Chief Technology Officer
Nkateko Nyoka Chief Officer-Legal & Compliance
Sector and Competitors
1st jan.Capi. (M$)
T-MOBILE US18.19%171 841
AT&T INC.12.99%150 264
AMÉRICA MÓVIL, S.A.B. DE C.V.-5.58%65 720