Vodacom Integrated Report 2017

Vodacom Group Limited

Integrated report for the year ended 31 March 2017

Our segment performance

continued

International

Year ended 31 March

Year-on-year

% change

2017

2016 Reported Normalised*

Service revenue (Rm)

16 775

17 763

(5.6)

2.2

Revenue (Rm)

17 350

18 356

(5.5)

2.6

EBITDA (Rm)

4 545

5 385

(15.6)

(8.6)

EBIT (Rm)

1 648

2 296

(28.2)

Data revenue (Rm)

4 113

4 019

2.3

Capital expenditure (Rm)

2 833

4 090

(30.7)

Customers

(thousand)

29 655

27 127

9.3

Data customers

(thousand)

12 997

10 055

29.3

Data revenue

grew 2.3%

(9.4%*) to R4 113 million driven by

a 29.3% increase in data customers

to 13.0 million, reflecting strong

demand for mobile data services in

all our markets, offset by strong

pricing competition, mainly in

Tanzania and the DRC. We continue

to focus on our commercial and

network offering to drive data

growth, ensuring customers

have access to better low-cost

smart devices, especially

Vodacom-branded devices,

increasing data network speeds

and driving the adoption of data

bundles. Improving monetisation

of the substantial growth

opportunity in data in all

operations is a key priority for

the next financial year.

Customers

increased 9.3% to 29.7 million as

the International operations have returned to

positive net additions of 2.5 million in the year. We

continue to improve our customer registration

processes as we work closely with regulators to

ensure full compliance in all our operations.

Service revenue

declined 5.6% (up 2.2%*)

to R16 775 million, impacted by exchange rate

volatility and the anticipated effect of the

disconnection of customers, most notably in the

prior year, in compliance with customer registration

requirements in the DRC, Mozambique and Tanzania.

Short-term pressure remains, with signs of

improvement in Tanzania, very strong execution in

Mozambique and Lesotho, but a challenging macro

environment in the DRC. We have introduced

‘Just 4 You’ personalised offers across all our

operations and take up is progressing well. M-Pesa

continues to be a key area of growth.