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TKG - Telkom - Vodacom results for the period ended December 31, 2006
Telkom SA Limited(Registration Number 1991/005476/06)ISIN ZAE000044897JSE and
NYSE Share Code TKG("Telkom")
Vodacom results for the period ended December 31, 2006
As at December 31, 2006, Vodacom Group recorded 28.2 million customers across
its networks operating in South Africa, Tanzania, the Democratic Republic of the
Congo, Lesotho and Mozambique, reflecting a 9.5% increase in the three months
since September 30, 2006. The growth in the customer base is a result of high
gross customer connections of 4.5 million for the three months since September
30, 2006. The Group`s non-South African operations comprised 6.4 million
customers, or 22.7% of the total customer base.
South African operations
South Africa includes the operations of Vodacom South Africa and the Smartphone
SP (Pty) Limited Group.
South Africa increased its customer base by 7.8% since September 30, 2006 to
21.8 million customers of which 2.9 million are contract customers and 18.8
million are prepaid customers, reflecting increases of 6.7% and 8.0% since
September 30, 2006, respectively.
To date customers joining the Vodacom network together with customers leaving
the Vodacom network due to number portability have totalled about 20,000. This
is less than the number of new connections which Vodacom usually activates in
any one day. As far as contract customers are concerned, Vodacom has gained
twice as many as it has lost through number portability, and as far as prepaid
customers are concerned it has lost more than it has gained.
Vodacom South Africa has retained its leadership in a highly competitive South
African mobile communications market with an estimated market share of 58% on
December 31, 2006. The SIM card penetration of the cellular industry in South
Africa is now an estimated 80% of the population.
South Africa customers, year-to-date ARPU, churn, 3 month inactive customers and
estimated market share as at December 31, 2006 compared to September 30, 2006
are as follows:
South African operations September 30, December 31, % change
2006 2006
Customers (thousands) 20,201 21,785 7.8
Contract 2,675 2,854 6.7
Prepaid 17,440 18,840 8.0
Community services 86 91 5.8
telephones
ARPU (ZAR) 124 127 2.4
Contract 528 524 (0.8)
Prepaid 61 64 4.9
Community services 1,017 960 (5.6)
telephones
Churn (%) 43.0 37.9 (5.1 pts)
Contract 11.0 10.3 (0.7 pts)
Prepaid 47.7 42.1 (5.6 pts)
3 Month inactive customers 10.2 9.7 (0.5 pts)
(%)
Estimated market share (%) 59 58 (1.0 pts)
Non-South African operations
Vodacom`s non-South African operations increased their total customer base by
15.7% since September 30, 2006 to 6.4 million customers. Satisfactory customer
growth was achieved in all Vodacom`s non-South African operations.
Vodacom`s non-South African operations` customers, year-to-date ARPU, churn and
estimated market share as at December 31, 2006 compared to September 30, 2006
are as follows:
Non-South African September 30, December 31, % change
operations 2006 2006
Vodacom Tanzania
Customers (thousands) 2,593 2,973 14.7
Contract 12 13 8.3
Prepaid 2,573 2,951 14.7
Public phones 8 9 12.5
ARPU (ZAR) 53 53 -
Churn (%) 35.2 35.5 0.3 pts
Estimated market share (%) 55 55 -
Vodacom Congo
Customers (thousands) 2,027 2,332 15.0
Contract 16 16 -
Prepaid 1,988 2,290 15.2
Public phones 23 26 13.0
ARPU (ZAR) 83 81 (2.4)
Churn (%) 30.0 30.4 0.4 pts
Estimated market share (%) 49 49 -
Vodacom Lesotho
Customers (thousands) 238 261 9.7
Contract 3 3 -
Prepaid 231 254 10.0
Public phones 4 4 -
ARPU (ZAR) 76 77 1.3
Churn (%) 20.5 19.7 (0.8 pts)
Estimated market share (%) 80 80 -
Vodacom Mozambique
Customers (thousands) 694 856 23.3
Contract 11 13 18.2
Prepaid 682 842 23.5
Public phones 1 1 -
ARPU (ZAR) 27 29 7.4
Churn (%) 41.8 45.8 4.0 pts
Estimated market share (%) 33 35 2.0 pts
Johannesburg
29 January 2007
Sponsor: UBS
Date: 29/01/2007 07:59:50 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
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