South Africa’s Vodacom Group Ltd. (VOD.JO) said Tuesday that revenue rose 4.2% in the fiscal first quarter as it reported growth across its domestic and international markets.
The mobile operator said group revenue for the quarter ended June 30 was 21.55 billion South African rand ($1.60 billion) based on the IAS 18 reporting standard, rising 4.2% from the year earlier, which translates to 5.2% increase on a constant currency basis. Based on the IFRS 15 reporting standard, its revenue was ZAR20.65 billion.
Service revenue also rose 4.2% in the quarter to ZAR17.8 billion, while international revenue increased 4.3% to ZAR4.42 billion. Normalized for currency fluctuations, international revenue rose 8.5%.
The company said it was able to increase service revenue in South Africa by 4.9% on a like-for-like basis despite a tougher economic environment, citing customer growth driven by its robust demand for personalized data bundles.
Looking ahead, Vodacom said it sees a moderate impact from the introduction of the end-user subscriber charter regulations, South African legislation that introduces additional protection for users of data. However, this will be offset by continued uptake of data bundles and strong elasticity in demand for these services, Vodacom said.
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