· Company records a growth in service revenue largely driven by data and M-Pesa performance
· The preferred network service provider in the Country, Vodacom maintains market leadership
30th October 2020, Dar es salaam: Vodacom Tanzania Plc (“Vodacom”) operations in the country continue to add real value to both country and citizens alike. This year the company will pay a total of TZS427.5 billion in dividends to its equity shareholders, out of which TZS400 billion is special dividend and TZS27.5 billion is final dividend for the financial year ended 31 March 2020.
The Country’s super-fast network prides itself on the impact it has had on its customers and the Tanzanian economy at large over the previous financial year. With over TZS 327.7 billion spent on more than 120 local suppliers and partner companies in Tanzania and over TZS 1.1 billion directed at corporate social investments, Vodacom closed the 2019-20 financial year on a positive note. The Company also created indirect employment to over 135 000 Tanzanians through agents, service desks and freelancers among other forms.
In the last financial year, Vodacom recorded growth in service revenue, which was largely driven by data and use of its M-Pesa service. M-Pesa revenue grew by 7.4%, contributing TZS 358.2 billion in total turnover while data revenue grew by 9.8%, raking in a total of TZS180.8 billion.
Speaking at Vodacom’s Annual General Meeting today, Interim Chairperson of Vodacom’s Board of Directors – Ms. Margaret Ikongo – expressed optimism over the company’s performance despite service barring to over 2.9 million customers in line with biometric registration requirements using NIDA identification:
“Despite a challenging year from both competitive forces in the market as well as the regulatory environment, the company recorded sound operational performance building from its commercial momentum from the previous year. We invested TZS 154.6 billion in our network and IT infrastructure to ensure customers benefit from superior services and network experience across the country. The result is that we have maintained subscriber revenue and market share leadership in both GSM and mobile money, reaching a total of 15.5 million subscribers and 10.1 million customers respectively,” she said.
Vodacom’s Managing Director, Mr. Hisham Hendi, said that he attributes the company’s positive results to the successful execution of its strategies, helping the company to move closer towards achieving its vision of leading Tanzania into the digital age and changing lives through technology.
“In the last financial year, data traffic grew by 14.6%, with significant growth coming in from 4G traffic. This reflects strong demand for mobile data services and proves our case in enhancing customers’ data experience through sustained investment in our network infrastructure, offering low-cost smartphones, as well as affordable data services,” he said.
In addition to investing in network expansion and upgrades, Vodacom expanded its M-Pesa ecosystem through innovative products and services, which saw an increase in both subscriber and revenue share while ensuring its customers had the best experience and security on its network. Looking forward, Hisham remarked that although the business environment remains very competitive, Vodacom Tanzania remains focused on delivering great value to customers by accelerating digital innovation and enhancing financial inclusion.
“Innovation is at the heart of everything we do. We will continue to lead in innovation, bringing more Tanzanians into an inclusive digital economy, increasing the number of customers using our mobile money offerings, expanding on our enterprise services, focusing on cost containment as well as maintaining the widest and most consistent network coverage.” Said Hisham.
With regards to the impact of Covid19, the company remains positive that despite the effects the pandemic has had by diminishing customer spend, Vodacom has managed to significantly accelerate its digital transformation plans.
At the Annual General Meeting Judge (rtd) Thomas Mihayo joined the Dar es salaam stock exchange listed company’s board as an independent non – executive director. Shareholders also elected and re-elected various non-executive directors to the company’s board.
Ends.
