Vodafone reported a 2.4% year-on-year rise in service revenue on an organic basis for the quarter ending September 30th. Group revenue for the half year to September 30th was almost 22.5 billion euros, up 5% on a reported basis.
Looking forward, the multinational group pointed to three potential digital growth engines:
1. "We now have over 50 million customers subscribing to a digital service, which leads to higher ARPU, improved distribution efficiency, higher NPS and lower churn. We are focused on further developing our strong positions in consumer IoT, Vodafone TV, home services, device lifecycle services and loyalty applications."
2. "Our IoT service was established in 2008 and has grown to be the largest IoT connectivity provider globally, with 136 million devices connected....Vodafone IoT currently generates 900 million euros annual revenue with double-digit revenue growth and a strong double-digit ROCE. The total addressable market is 10 billion euros and expected to grow 16% per annum, with further stimulus from the NextGenerationEU recovery plan."
3. "Our financial services businesses in Africa – encompassing Vodacom Group, Safaricom and Vodafone Egypt – have collectively grown to be the leading FinTech in Africa. Vodacom Group and Safaricom together have 57 million customers, with MPesa transaction value of 26.8 billion US dollars per month in the first six months of financial year 2022. Our African FinTech business has significant growth opportunities through penetration growth in existing markets, expanding into new markets and scaling new products, including the recent launch of the VodaPay ‘super-app’ in South Africa. The Vodacom Group has clear financial ambitions to grow its new services, which include financial services, at or above 20% CAGR."
Source: Vodafone statement