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Our business
Operating context
Delivering on our strategy
Our governance structure
Administration
Year ended 31 March
2017
2016
Revenue (MZNm)
14 641
11 896
EBIT (MZNm)
2 568
2 065
Customers
1
(thousand)
5 146
4 826
Data customers
2
(thousand)
2 280
2 112
MOU per month
4
121
104
Total ARPU
5
(MZN per month)
216
169
Number of employees
485
466
NPS (position relative to competitors)
2nd
1st
Customer market share #1
47.6%
45.8%
¥
Vodacom Mozambique delivered a solid performance this
year maintaining double-digit revenue growth of 23.1% to
MZN14.6 billion, despite challenging economic conditions that
resulted in the metical depreciating 55.8% to the rand. We also felt
the impact of customer disconnections to comply with customer
registration requirements.
Voice revenue continued to grow strongly, up 18.6%. This was
driven mainly by higher ARPU, as a result of increased usage and
the 6.6% growth in customers. Significantly, data revenue has
continued its upward momentum, increasing 38.5%, reflecting the
increased demand for data services and the success of sales of
Vodacom-branded smartphones; data revenue now contributes
23.0% to service revenue. Demand for our financial services
offering continues to grow, with M-Pesa revenue increasing more
than threefold. We now have 2.5 million M-Pesa customers who
are benefiting from the migration to the new M-Pesa platform,
which enables us to offer more services seamlessly.
EBIT growth was due to the strong revenue growth, but has been
hampered by higher operating expenditure as a result of the
foreign exchange movement. We have managed to reduce the
impact on EBIT by delivering cost savings through the ‘Fit for
growth’ programme, resulting in lower network costs and revised
commission structures.
Our main focus for the year ahead is to reclaim our NPS leadership
through network enhancement and to improve customer
experience by delivering on our customer CARE initiatives.
We will accelerate growth in data by increasing active data
customers and increase smartphone penetration by moving
subsidies to low-cost smartphones. We will grow the enterprise
business through indirect channel acquisition of customers and
by providing additional offerings to corporates on the Internet of
Things, and we will continue to deliver EBIT growth through our
‘Fit for growth’ initiatives.
The Regulator intends to launch the spectrum auction during
2017. We await the publication of the resolution with the terms
and conditions of the auction. We are also exploring alternatives to
obtain additional spectrum.
The Regulator has applied a 50% reduction in mobile termination
rates (MTRs) from MT0.86 to MT0.43 per minute from
1 January 2017 until the end of April 2017, and is expected
to continue decreasing MTRs.
Mozambique
Year ended 31 March
2017
2016
Revenue (LSLm)
1 116
1 027
EBIT (LSLm)
426
383
Customers
1
(thousand)
1 468
1 399
Data customers
2
(thousand)
549
532
MOU per month
4
82
75
Total ARPU
5
(LSL per month)
61
62
Number of employees
207
202
NPS (position relative to competitors)
1st
1st
Customer market share #1
90.9%
87.7%
¥
Vodacom Lesotho continued to grow strongly this year.
Revenue increased 8.7% and we delivered an even stronger EBIT
growth of 11.2%. The main contributor to revenue growth has
been the increase in data revenue, which now contributes 24.4%
of service revenue. Our bundle strategy helped us achieve a 34.2%
decline in the average price per MB while delivering overall data
revenue growth of 38.2%. We continue to drive smartphone
penetration through the sale of Vodacom-branded devices at
affordable price points.
We have seen significant growth in M-Pesa revenue, supported
by the number of M-Pesa customers increasing 76.8%. This growth
was the result of expanding the M-Pesa ecosystem by increasing
‘pay bill’ transactions, airtime purchases and bulk payments, such
as salary payments, through M-Pesa, and enhancing the stability
of the M-Pesa platform.
Our strong EBIT growth has been possible through delivering
on our ‘Fit for growth’ initiatives, mainly by increasing sales
(airtime and connections) through direct channels such as
M-Pesa and retail stores.
Through our CARE initiatives, we continue to see improvements in
call centre and retail KPIs, with service levels consistently reaching
above 80%. We ended the year with a low 0.38% dropped-call rate.
These initiatives assisted the recovery in NPS with a 5ppt gap to
the competitor.
We continued to invest in the network, increasing 3G and 4G sites,
as well as our fibre rollout. Significant capital was invested in
developing our IT systems to build capabilities to enhance our
customer value management propositions.
Looking to the year ahead, data monetisation remains a key
priority as we aim to increase smartphone penetration through
subsidies directed towards 3G/4G devices.
We are optimistic that our ability to offer contextually relevant offers
through our ‘Just 4 You’ platform launched in November 2016, we
will significantly improve customer experiences.
M-Pesa remains a key growth area. We have obtained Central Bank
approval to implement a hosted M-Pesa platform with Vodacom
South Africa. This will enable a deeper focus on customer value
management with new technology and people capabilities
built in.
Lesotho