The following is a summary of the Vodacom Group Limited (VODAF) Q4 2024 Earnings Call Transcript:
Financial Performance:
Vodacom's annual revenue grew by 26.4% to ZAR150.6 billion, with service revenue increasing by 29.1% to almost ZAR121 billion.
Egypt reported a remarkable 32.8% growth, contributing to a 7.8% increase in pro-forma group EBITDA.
However, there was a 10.8% decrease in headline earnings per share due to higher interest rates and foreign exchange losses.Financial service revenue reached ZAR13 billion, a 20% increase on a pro-forma basis, alongside an additional ZAR18 billion from Safaricom.
There was a 4.2% growth in South Africa's revenue to ZAR88.3 billion and a 2.6% increase in service revenue to ZAR61.6 billion.
Vodafone Egypt contributed a service revenue of ZAR30.2 billion.
Business Progress:
Vodacom added 3 million data customers, reporting a 12.8% increase to 28.8 million.
The strategic rollout of an additional 2,300 4G base stations led to a 21% increase in the number of 4G sites.
Vodafone Egypt witnessed a 41.8% increase in data traffic due to investments in network infrastructure.
Vodacom plans to launch a daily repayment model for smartphone financing in FY 2025 that is expected to enhance penetration rates.
With a 3.9 million increase in customers, the company's international portfolio reached a total of 54.1 million customers.
Looking ahead, Vodacom aims to exceed 230 million total customers and 100 million financial service customers by FY 2027.
Continued emphasis on investing in organic growth, diversifying product portfolio, improving customer proposition, and accelerating growth in new services, including digital and financial services, fixed and IoT.
Despite a few setbacks, the company sees potential growth in Safaricom and Egypt, and a competitive edge in the South African market.
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