Business, South Africa

Vodacom Q1 revenue rises up by 3.9% to 20.7 billion rand

Vodacom Group Headquarters South Africa, Vodaworld

Vodacom Group revenue rose 3.9 percent to 20.7 billion rand ($1.60 billion) in the first quarter, boosted in its home market South Africa by increased smartphone sales, the telecoms operator said on Thursday.

Vodacom’s South African revenue grew 7.8 percent to 16.7 billion rand for the quarter ending 30 June, 2017, after sales of smartphones rose 17 percent, Vodacom Group CEO Shameel Joosub said in a statement.

International operations revenue declined 8.2 percent to 4.2 billion rand for the period, which the company blamed on currency volatility, the firm said. Customers outside South Africa climbed 12 percent to 30 million, it added.

Vodacom said it expected to boost its performance outside South Africa with its expansion in Kenya through a 34.6 billion rand ($2.72 billion) deal to acquire a 35 percent stake in Safaricom from Vodafone, its majority owner.

The deal will give Vodacom access to a market where Safaricom has a 71 percent share and demand for mobile phone services is still growing.

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