Vodacom's first-quarter service revenue rises 11.4% on Egypt growth

File photo: A branch of South African mobile communications provider Vodacom in Cape Town is shown in this picture taken on 10 November 2015. Reuters/Mike Hutchings/ File Photo

Vodacom, majority-owned by Britain's Vodafone, said group service revenue rose to R32.3bn rand ($1.84bn)in the three months to 30 June.

On a normalised basis, group service revenue jumped 13.8%, tracking favourably against its medium-term target of double-digit growth, Vodacom said.

Service revenue in Egypt grew at 43.8% in local currency, making it a star performer. The South Africa market delivered a 3% increase, supported by contracts, while Tanzania, Democratic Republic of Congo and Lesotho contributed significantly to normalised growth of 12.4% in its international business.

Service revenue outside of mobile services, such as from fintech, was a key growth driver and contributed R6.9bn in the quarter, equating to 21.4% of the group and was "well on track to reach our target contribution of 30% by 2030," Vodacom Group CEO Shameel Joosub said in a statement.

Group financial services revenue of R3.9bn was supported by strong growth from the insurance business in South Africa, "excellent" growth in Egypt of 44.3%, and a 17.4% increase from the international business on the back of improved performance in Mozambique, Joosub said.

Including Kenya's Safaricom, in which it owns a stake, Vodacom now processes $460bn in mobile-wallet transaction value annually, he said.