Africa-Press – Tanzania. VODACOM Tanzania has reported service revenue of 966bn/- for the year ending March which is down 5.7 per cent compared to 1.024tri/- posted on the previous year.
The revenue and profit were adversely affected by the barring of services to 2.9 million SIM cards late in the previous financial year and an associated step up in competitive intensity.
This was unveiled during the Vodacom Tanzania Annual General Meeting (AGM) for the year ending March.
Vodacom Tanzania Managing Director, Hisham Hendi, said the financial year 2020-21 was challenging to the whole country but the telecommunication sector had specific challenges to face.
Also, from a financial perspective, revenue and profitability were adversely impacted by the barring of services to 2.9 million SIM cards late in the previous financial year and an associated step up in competitive intensity.
Despite challenging operating conditions, there are encouraging signs of improvement reported whereby a total of 549.3bn/- has been paid in dividends since the company was listed 4 years ago.
Other indicators reported were 356.8bn/- in M-Pesa revenue and 186.9bn/- in mobile data revenue, a rise of 3.3 per cent.
Moreover, subdued economic activities due to the health crisis dampened customer spend. While these factors contributed to a 5.7 per cent decline in service revenue, there was a notable improvement in service revenue growth in the second half of the year, largely supported by growth in data and M-Pesa revenue.
Vodacom continues to invest and expand in the ecosystems of these platforms and it is expected that this will remain a strong driver for growth in the future.
Furthermore, Vodacom has also taken significant steps to ensure it builds a diverse revenue stream through revamped digital services aiming at providing customers with more services through digital platforms.
Vodacom Tanzania Board Chairman Justice (rtd) Thomas Mihayo added that the company has implemented numerous measures to ensure the safety and wellbeing of its employees and contractors, and to keep individuals, communities, businesses, and governments connected by maintaining the quality and stability of its network.
During the shareholders meeting, it was reported that Mr Hendi the current Managing Director will be leaving the company to take up a new position within the Vodafone Group in Spain.
The Chairman commented that, “For the potential societal contribution of business to be fully realized in Tanzania, it is important that we align with government and regulators on purposeful outcomes and foster a relationship of mutual trust and respect.
The Chairman wished him well saying, “On behalf of the Board, who under his leadership, Vodacom continued to lead the industry in implementing a digital strategy that has accelerated the country’s financial inclusion through innovative mobile financial services.
