Vodacom Tanzania posts Sh53bn 3rd quarter profit
Vodacom Tanzania board chairman Judge (retired) Thomas Mihayo (second left), addresses the media after the company’s 2024 shareholders meeting in Dar es Salaam. Others from left include Vodacom Tanzania managing director Philip Besiimire, board member Margaret Ikongo and the company’s chief financial officer Hilda Bujiku. PHOTO | COURTESY
What you need to know:
- The company’s net profit after tax increased by about 200 percent to Sh53.4 billion from Sh17.7 billion recorded during the same period in 2023
Dar es Salaam. Vodacom Tanzania has more than tripled its profit after tax for the third quarter to Sh53.4 billion as customers for mobile money and data increased.
The company, listed on the Dar es Salaam Stock Exchange (DSE), said in a statement that the rise in profitability for the third quarter that ended on December 31, 2024, is also driven by strong commercial execution and sustained investment in network expansion and digital services.
The company’s net profit after tax increased by about 200 percent to Sh53.4 billion from Sh17.7 billion recorded during the same period in 2023, according to the company’s statement.
The growth was underpinned by a 20.5 percent rise in service revenue, fuelled by double-digit gains in M-Pesa and data services.
Vodacom Tanzania’s managing director, Mr Philip Besiimire, expressed satisfaction with the company’s financial trajectory despite some operational challenges.
“I am pleased with the execution of our commercial strategy, which navigated us through some headwinds while still delivering strong growth,” he stated.
M-Pesa, the company’s flagship mobile financial service, continued to be a key revenue driver, recording a 28.8 percent growth, while data revenue rose by 23.6 percent, he said.
The increase in customer base also played a pivotal role in Vodacom’s performance, with mobile subscribers growing 15.0 percent to 22.0 million and data customers increasing by 16.9 percent to 11.6 million.
The number of data users increased by 16.9 percent to 11.6 million, highlighting ever-growing demand for data services.
“This growth was driven by our ongoing investment in data network infrastructure and effective commercial strategies in acquiring and retaining customers, while also growing their usage, including driving increased adoption of smartphones,” said Mr Besiimire, adding that the company rolled out 109 new 4G sites, bringing the total to 3,172 sites during the quarter.
He said such investments supported a 27.3 percent increase in data traffic, with 4G traffic growing 42 percent annually, constituting 84 percent of total data traffic.
Cost-saving initiatives and favourable foreign exchange conditions also bolstered profitability. Vodacom Tanzania said it achieved cost savings of Sh15.2 billion, while the appreciation of the Tanzanian shilling against major currencies contributed positively to the bottom line.
Mr Besiimire reaffirmed the company’s commitment to sustained growth, saying he’s optimistic about the potential for a stable political and regulatory environment to support the company’s ambition of “connecting Tanzanians for a better future.”
The telecoms provider continues to invest in digital and financial services, with a focus on expanding smartphone penetration, increasing network resilience, and enhancing M-Pesa’s suite of products.
Recent initiatives include M-Wekeza, a collective investment platform, which aims to deepen financial inclusion by allowing M-Pesa users to invest in securities and stocks via mobile.
