Vodacom increases dividend as South Africans' hunger for data grows
Vodacom has reported an increase of 7% in local service revenue for the year ended March 31 2021.
This is despite being pushed into some data price cuts during 2020.
Group revenue is up 8.3% to R98.3 billion, supported by service revenue growth of 5.8%.
In South Africa, service revenue grew by 7.0% on the back of increased data usage, our highly successful summer campaign and demand for financial services – collectively helping to offset numerous initiatives aimed at delivering greater value to customers, including tariff reductions of up to 40% at the beginning of the financial year and the successful launch of Vodabucks...Shameel Joosub, Group CEO - Vodacom
As a result, Vodacom has declared a final dividend of 410 cents per share, up 1.2% year on year.
Bruce Whitfield interviews Group CEO Shameel Joosub on The Money Show.
He expands on the surge in data traffic as Covid-19 hit.
It's really come from people working from home, entertaining from home and educating from home.Shameel Joosub, Group CEO - Vodacom
The price stops also help, and then making data much more affordable for students and so on.Shameel Joosub, Group CEO - Vodacom
Then, of course, there was a lot of free traffic which we also provided as part of our social benefits, which is heavily discounted data for universities and completely zero-rated sites for both education, for health... which also generate a lot of data.Shameel Joosub, Group CEO - Vodacom
Vodacom had a responsibility to step up during the pandemic says Joosub, and will continue to do so.
He adds that the group did not focus on profitability but rather on doing the right thing.
What I'm particularly proud of is that we brought our purpose to life as a good corporate citizen...Shameel Joosub, Group CEO - Vodacom
... starting off with the price cuts of R3 billion, and then zero-rating person-to-person M-Pesa which cost us another R2 billion...Shameel Joosub, Group CEO - Vodacom
Listen to Joosub expand on Vodacom's plans:
This article first appeared on CapeTalk : Vodacom increases dividend as South Africans' hunger for data grows
Source : https://www.123rf.com/stock-photo/black_child_with_cell_phone.html