How we create value

We generate profit by efficiently utilising mobile and fixed-line assets to provide our consumer and enterprise customers with valued voice, data, messaging and related services. Our competitive differentiation rests in the quality of our network, in the nature and quality of our products and services, and in how we manage our cost base.

Our revenues

Most of our revenue comes from selling mobile voice, messaging and data services to individual consumers, with the balance coming from the sale of these mobile services as well as connectivity and network provision services to our enterprise customers (click here). The recent decline in mobile voice revenue has been more than offset by growth in data revenue, fuelled by the increased uptake of smart devices, improved network coverage, more affordable data bundles and enhanced digital content.

  • 41.6% of our individual users pay on a monthly basis via fixed-term contracts (‘postpaid’), while the balance top up their airtime on a ‘prepaid’ basis.
  • 68.4% of mobile contract revenue is in-bundle, reducing our exposure to the risk of discretionary spend in out of bundle usage.

 Key revenue differentiators

  • Rated first in network quality in four of five countries of operation.
  • A diverse and widespread distribution network across all our operations.
  • Industry-leading customer value management (CVM) systems, people and processes.
  • Leveraging of global enterprise relationships for pan-African service delivery.
  • Best-in-class customer service support systems.

Group service revenue composition (%)

Group service revenue composition (%)


Our costs

We have a strong track record of optimising expenses and converting revenue into cash flow. We have achieved significant results in limiting cost growth through our ‘Fit for growth’ programme, managing staff expenses, publicity spend and other operating expenses. This has been enabled through an improved culture of cost containment across the business. Our resulting strong cash flow helps us to maintain a high level of capital reinvestment, primarily in our network infrastructure to maintain our leading position in network coverage, call quality and data speed in all our markets. We have also focused some capital spend on our new billing system as we transition from a predominately mobile company to a unified communications provider. In addition to investing in the future prosperity of the business, cash generated from our activities allows us to maintain our generous shareholder returns, with our dividend policy of at least 90% of HEPS.

 Key cost differentiators

  • Leveraging global best practice on cost optimisation through our ‘Fit for growth’ programme.
  • Benefiting from purchasing power of Vodafone Procurement Company.
  • Consistent investment in network, delivering continuous improvement in operating costs through more efficient technologies and network innovation.
  • Robust governance processes for approving investments and reviewing product, cost and investment decisions.

Group total expenses composition (%)

Group total expenses composition (%)