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|Rm||Quarter ended 31 December||YoY % change|
|Group service revenue||23998||20664||16.1||3.5|
Shameel Joosub, Vodacom Group CEO commented:
The third quarter of our current financial year is the first set of results that includes revenues from what we expect will be a transformative transaction for the Group – our acquisition of a 55% stake in Vodafone Egypt. In December last year we announced the finalisation of the R43.6 billion deal, the largest in Vodacom Group’s history, and one that cements our position as a leading pan-African technology company in addition to diversifying and accelerating our growth profile. It also means that our population reach exceeds 500 million people across Africa, providing a clear growth path for Vodacom.
Vodafone Egypt was consolidated from 8 December 2022, contributed over R1.8 billion to Group service revenues and was a key factor, alongside currency gains and operating model resilience, in the 16.1% improvement in our service revenue, despite ongoing financial market volatility and weaker prospects for the global economy.
The 4.7%* increase in normalised Group revenue – which strips out currency fluctuations and the impact of Vodafone Egypt’s acquisition – underscores the ongoing resilience of the Group’s portfolio at a time when economic uncertainty prevails in the face of the war in Ukraine and the supply chain impacts of the COVID-19 pandemic.
In addition to delivering value to shareholders by ensuring the smooth integration of Vodafone Egypt into the Vodacom Group, we remain firmly focused on our purpose of connecting people for a better future and, in particular, assisting customers impacted by cost of living constraints.
A prime example of delivering on this promise was through our recent innovative summer campaign whereby customers in South Africa, our largest market, benefited from Vodabucks rewards, which were convertible into cash and could be used for purchases on the VodaPay super-app. While producing even greater value to customers, this mechanism also showcases an evolution in the Vodacom ecosystem that resulted in a significant uplift in downloads of the VodaPay super-app, breaking through the 4.5 million mark, with 2.7 million registered users.
Certain financial information presented in this trading update constitutes pro-forma financial information in terms of the JSE Listings Requirements. The applicable criteria, on the basis of
which this pro-forma financial information has been prepared, is set out in the supplementary information on pages 14 to 15.
The pro-forma financial information has not been audited or reviewed or otherwise reported on by external auditors.
The quarterly information has not been audited or reviewed by Vodacom’s external auditors.
All growth rates quoted are year-on-year and refer to the quarter ended 31 December 2022 compared to the quarter ended 31 December 2021.
|*||Normalised growth which presents performance on a comparable basis. This adjusts for trading foreign exchange, foreign currency fluctuation on a constant currency basis (using the current year as base) and excludes the impact of merger, acquisition and disposal activities, at a constant currency basis where applicable, to show a like-for-like comparison of results.|
|Amounts marked with an * in this document represent normalised growth as defined above.|
|^||Vodafone Egypt Telecommunications SAE (Vodafone Egypt) was consolidated from 8 December 2022 representing the effective date of the transaction. No comparative information or growth rates are included.|