We generate profit by efficiently utilising mobile fixed connectivity, cloud and hosting and fixed-line assets to provide
our consumer and enterprise customers with valued voice, data, messaging and related services. Our competitive
differentiation lies in the quality of our network, the nature of our products and services, the ability to use data
analytics to extract value, the extent of our regional footprint, the quality of the relationships we have with key
stakeholders, and our proven ability to manage our cost base.
Our revenues
Most of our revenue comes from selling mobile data, voice and
messaging services to individual consumers, with the balance
coming from the sale of these mobile services, coupled with
connectivity, cloud and hosting and network provision services to
our enterprise customers. The decline in mobile voice revenue
has been more than offset by significant growth in enterprise and
data revenue, fuelled by the increased uptake of smart devices,
improved network coverage, more affordable data bundles and
enhanced digital content.
41.7% of our customer revenue is generated from customers
who pay on a monthly basis via fixed-term contracts
(contract), while the balance top up their airtime on a
prepaid basis.
70.6% of mobile contract revenue is in-bundle, reducing
exposure to the risk of discretionary spend in out-of-bundle
usage.
Key revenue differentiators
Rated first in network quality in three of our five countries of operation.
A diverse and widespread distribution network across all our operations.
Industry-leading customer value management (CVM) systems, people and processes.
Personalised offers to customers to better fit their needs and behaviours.
Leveraging off global enterprise relationships for pan-African service delivery.
Best-in-class customer service support systems.
Ability to leverage off our relationship with Vodafone, driving global best practice in performance.
Group service revenue composition (%)
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These items were the subject of the limited assurance engagement performed by KPMG.
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
re-investment, 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 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 business allows us to maintain our
generous shareholder returns, with our dividend policy of
paying out at least 90% of HEPS.
Key cost differentiators
Leveraging global best practice on cost optimisation through our Group-wide ‘Fit for growth’ programme where we benefit from and share best practice with Vodafone.
Benefiting from the 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.
