Vodacom has released financial interim report for half-yearly net profit, unfortunately the figures doesn’t look good. The company reported 9% decline in their half-yearly net profit as compared to previous year, R8.9 billion to R8.1 billion.
The company blames the current negative economic climate and Ukraine war for affecting their business and financial losses.
“In South Africa, we invested R5.8 billion in our network — the most in a six-month period — to further enhance the customer experience at a time when the country experienced record levels of power outages,” the company stated.
The mobile operator also cited the impact of load shedding and rolling blackout into their operations. They also spend almost R2 billion investment into batteries in the last two years.
“At the same time, we continue to work closely with Eskom to find a renewable energy solution for the benefit of our planet and customers,” Vodacom said.
The company also invested in a new range of products such as financial, insurance policies and digital services and fixed broadband to grow its revenue base.
“In addition to increased demand for personalised bundles and strong equipment sales, these factors contributed to a 4.9% rise in revenue in our largest market. Underpinned by an almost 20% increase in insurance policies, revenue generated from financial services improved 8.1% to R1.4 billion,”Vodacom said.
A year ago the mobile operator introduces a super app VodaPay, which saw 2.2 million registered users through 3.5 million downloads.
