VODACOM Tanzania profit has increased by 32.6 per cent to 51.4bn/- in the six months ended September, on account of strong revenue growth and cost containment programme.
With over 760000 customers joining the Vodacom Tanzania network in the period under review, displaying a 5.5 per cent increase to 14.8 million customers of which 7.2 million use M-Pesa and 8.2 million access data services.
Vodacom Tanzania Managing Director, Hisham Hendi said over the weekend in Dar es Salaam that service revenue grew by 6.5 per cent with margins expanding.
“We invested 78.7bn/- in network and IT infrastructure to ensure all customers benefit from superior services and network experience across the country,” he said.
“Our key strategic growth pillars, being M-Pesa and data that continued to deliver good results despite intensified competition in the market.
M-Pesa revenue increased 15.9 per cent and data revenue up 17.4 per cent while proactive measures to stabilize voice revenues are proving to be successful,” he added.
The commercial execution and strategic partnerships aimed at driving financial inclusion, as well as empowering customers to transact easily has proven successful with 29.1tr/- transacted on M-Pesa in the mobile money system during the first half of the year, up 21.4 per cent.
We continue to expand the ecosystem with more services such as micro loans, merchant payment system and widening interconnection with the banks and other operators.
A good traction has been witnessed recently launched overdraft product known as ‘Songesha’ with 1.9 million customers utilizing the service and 4.4bn/- provided through this product.
The uptake of the master card product, that was launched one year ago which allows customers to conduct transactions online by creating a virtual card and ultimately linking to their M-Pesa wallet has shown positive results.
A total of 233000 virtual cards were created and over 200000 transactions valued at 2.3 million US dollars were processed.
“We continue accelerating the implementation of biometric registration for our customers to comply with the regulator’s deadline of 31 December 2019,” he noted.
The key challenge is the associated cost as well as well as the low penetration of national identification cards specifically in the regions.
While all necessary measures are taken, there are concerns on the wider impact of the envisaged deadline if customers will have to be switched off to ensure compliance. Looking ahead Vodacom continue to make good progress on key growth pillars.
There is expectation of momentum from expanding mobile money services, investment into highvalued and youth segments as well as enhanced data user experiences across the country to continue.
“We aim to provide a superior 4G data user experience to more regions, allowing for further improvement to the monetization of data traffic country wide,” he added