Vodacom Group now processes more than US$400-billion in transaction-value annually through its mobile-wallet-offerings.
The JSE-listed telecommunications group disclosed this figure on Wednesday in its latest trading update for the quarter ended 30 June 2024. In the past year, it transacted $400.2-billion through its mobile money-platforms, including Safaricom.
„Financial services is a clear strategic priority for the group and remains the largest component of ‚beyond mobile services‘“, it said in reference to revenue that it generates outside its traditional mobile services business.
„I was particularly pleased with the growth of M-Pesa services, that aim to deepen financial inclusion, such as loans, savings, international money transfer and merchant services“, said Vodacom Group CEO Shameel Joosub.
„Group Financial Services Revenue of $178-million was also supported by rapid local currency growth of 87 % in Egypt and strong growth in South Africa within our Insurance and Airtime Advance segments“, he said.
Vodacom’s „super apps“ – VodaPay, Vodafone Cash and M-Pesa – are key to the group’s plan to further its ambitions in financial services, as they „integrate our own products and services with the best offerings from our partners“.
Vodacom said that in the quarter, it reported revenue growth of 1 %, reaching $1.96-million, although the top-line performance was impacted by „foreign-exchange headwinds“.
Group Service Revenue climbed 10 % on a normalised basis, above the medium-term target. South African Service Revenue grew by 1,9 %.
Joosub said Service revenue from Vodacoms „beyond mobile services“ category – which includes digital and financial services, fixed-line telecommunications and Internet of Things services – contributed R6-billion to revenue in the quarter.
Das equated to 20,8 % of the group total, with Vodacom saying, it is on track to reach its targeted contribution of 25–30 % „over the medium term“.
Egypt was Vodacoms best-performing operation in the quarter, with revenue rising 433,7 % in local currency, well above inflation. In South Africa Prepaid performed well. Price increases also helped deliver a stronger performance.
„Supported by additional data allocations and good growth in smart devices, data traffic grew 31.3%, while ‚beyond mobile services‘ increased by 6.3%, contributing $140.9 million to South Africa’s service revenue of $829.5-million.“ „Having invested $103 million in the quarter, we expect to invest around $623 million of capital expenditure in the current financial year to further enhance customer experience“, Joosub said.
