This archive report was first published on 11 November 2019.
Published on November 11, 2019, Vodacom Tanzania's half-year results show a significant increase in profits, thanks to the growth of Mpesa and data services revenue.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 9.3% to TSh147.0 billion, while net profit increased by 32.6% to TSh51.4 billion.
According to Hisham Hendi, Vodacom Tanzania's CEO, Mpesa and data are the company's strategic growth pillars, and their investments have paid off.
Mpesa Growth ¶
M-Pesa revenue grew 15.9% to TSh182.0 billion, driven by a strong increase in the customer base, which added 379,000 new customers to reach 7.2 million in the first half of the year.
The company also saw an increase in the uptake of mobile money products, such as microloans, merchant payment systems, and interconnection with banks and other operators.
Additionally, the recently launched overdraft product, 'Songesha', has gained 1.9 million customers and has lent out TZS4.4 billion.
M-Pesa now contributes 34.4% of service revenue, with over 7.4 million transactions processed during the first half of the year, a 43.1% increase.
Data Revenues Growth ¶
Mobile data revenue grew 17.4% to TZS91.2 billion, while data customers increased by 1.3% to 8.2 million.
According to Mr. Hendi, there was a significant growth in 4G traffic, reflecting strong demand for mobile data services.
Messaging revenue increased by 11.0% to TZS21.1 billion, with the number of SMSs transmitted declining by 4.2% to 16.3 billion, while the price per SMS increased by 15.9%.
