Vodacom Tanzania net profit for the year ending March has jumped up almost four times to 170.24bn/- after selling its stake in Helios Towers Tanzania (HTT).
Vodacom, the first telco to list on Dar es Salaam Stock Exchange (DSE), said in a financial statement issued yesterday that it earned 120.25bn/- to boost its revenue for the year ending March after selling its 24 stake in HTT.
Revenue grew by 5.0 per cent to 978bn/- thanks to data, M-Pesa and sales of devices. Vodacom Managing Director Ian Ferrao said the strong results were achieved in the context of an uncertain regulatory environment, as well as some aggressive competition.
“This has been a very pleasing year for Vodacom Tanzania, characterised by a turnaround in the growth of service revenue and underlying profitability that has been seen over the past three years,” Mr Ferrao said.
He furthermore added that recent developments in the regulatory environment have raised additional challenges in the telecommunications sector.
“These include strict enforcement of customer registration requirements, mandatory investment in a new government electronic revenue collections system, as which has had an adverse impact on our business,” the outgoing Voda Chief said through a statement.
The active customers increased by 1.9 per cent to 12.9 million after improving compliance with customer registration requirements.
Voda, the leading telco in the country, recorded a mobile voice revenue decreased by 5.8 per cent to 392.3bn/-, while MPesa revenue grew by 16.7 per cent to 291.2bn/- During the year, Vodacom sold more than 220,000 devices, of which over 115,000 were smartphones and tablets.
Vodacom Tanzania Chairman Ali Mufuruki said they have successfully navigated through significant changes in operation over the past three years.
“However, managed to deliver the turnaround in service revenue growth and underlying profitability this year,” Mr Mufuruki, serving his first year as Voda chair, said.
He also revealed that during the same period, modest growth in consumer spending placed a significant amount of pressure on the majority of industries across the country.
The telco said based on the strength of this year’s performance, they are now seeing an opportunity to prioritise investments over the short-term to further enhance their leadership in data and M-Pesa user experience.
Vodacom is a leading mobile telecom operator with 13.2 million customers and a market share of 32 per cent, according to Tanzania Communication Regulatory Authority (TCRA) statistics.
Its shares at DSE traded at 800/- apiece yesterday.
Daily News
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