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VODACOM GROUP LIMITED - 3rd Quarter results ended 31 December 2012

Release Date: 06/02/2013 07:05
Code(s): VOD     PDF:  
Wrap Text
3rd Quarter results ended 31 December 2012

Vodacom Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/005461/06)
Share code VOD  ISIN ZAE000132577
JSE code VOD006 ISIN ZAG000101692


News release
Vodacom Group Limited trading statement for the quarter ended 31 December 2012
6 February 2013

Salient features

     -     Group revenue up 1.7%. Excluding the sale of Gateway Carrier Services and the impact of movements in foreign currency,
           revenue was up 4.8%* (6.7% excluding the impact of mobile termination rates ('MTRs')).

     -     Group data revenue up 23.3% with active data customers increasing 33.8% to 18.5 million as we continue to drive
           smartphone penetration with increasing data bundles sold.

     -     Group active customers increased 12.2% to 51.0 million as we attracted new customers through compelling value offers,
           superior network quality and network expansion.

     -     Continued growth from on-going International operations; service revenue up 22.0%* supported by strong customer growth
           and increased adoption of data services.

     -     International data revenue growth of 100.0%, led by 72.6% growth in active M-Pesa customers to 4.7 million.

     -     South African service revenue declined by 1.7% (up 1.4% excluding the impact of MTRs) due to competitive and economic
           pressures, coupled with a temporary impact from our actions to reduce unprofitable calling card1 SIMs.

     -     We extended our LTE coverage in South Africa to reach Johannesburg, Pretoria, Durban and Cape Town, with 542 active sites.

                                                          Quarter ended                          Year on year                                 Quarterly           
												   % change 				       % change
Rm                                                        December 2012                  Reported           Normalised*                Reported        Normalised*
Revenue                                                          18 294                       1.7                   4.8                     5.1                7.1
 South Africa                                                    15 475                       2.2                   2.2                     7.3                7.3
 International                                                    2 875                     (3.6)                  21.1                   (6.0)                6.2
Service revenue                                                  15 298                     (1.7)                   1.9                     2.4                4.7
  South Africa                                                   12 532                     (1.7)                 (1.7)                     4.2                4.2
  International                                                   2 786                     (4.1)                  22.0                   (6.0)                6.8

Shameel Joosub, Vodacom Group CEO commented:
"It's been a quarter with strong performances in data and our International operations tempered by some challenges in our
South African business. Our Group revenue expanded by 4.8%* year on year and 7.1%* quarter on quarter. Group data revenue grew
23% and revenue from the International operations grew 22%*.
Active customer growth across the Group was also positive, with the International base growing 13% and the South African base
growing 12%. While customers increased, voice revenue in South Africa was impacted by more active competition in a softer economy
coupled with the decision taken earlier in the year to discourage calling card1 behaviour. This was the right thing to do to improve
profitability but has temporarily impacted revenue growth.
During the quarter our investment activities were focused on maintaining network leadership, most clearly demonstrated by the
commercial launch of Vodacom's LTE service – the first in South Africa."



1. Calling card behaviour arises where airtime is bundled with a starterpack and sold at a discounted price by wholesalers. This results in customers acquiring the SIM
   cards solely for use of the discounted airtime and discarding the SIM once the airtime value has been utilised.
* Represents normalised growth at a constant currency (using current year as base) from on-going operations. Refer below for a reconciliation of normalised growth.
All growth rates refer to the quarter compared to prior year unless stated otherwise.


Operating review
Group
Group revenue increased 1.7% to R18.3 billion. Revenue was impacted by the sale of Gateway Carrier Services on 31 August 2012 as
well as movements in foreign exchange. On a normalised basis, Group revenue increased 4.8%* due to the growth in data services and
International operations, partially offset by the impact of MTR cuts, competitive pricing pressures and continued economic weakness
in South Africa.

South Africa
Revenue increased 2.2% to R15.5 billion driven by the 27.2% growth in equipment revenue from smartphone and tablet sales. Service
revenue declined 1.7% year on year to R12.5 billion. Excluding the impact of regulated cuts in MTRs, service revenue increased 1.4%
driven by the continued expansion of the customer base and increased data revenue offsetting the downward pressure on voice and
messaging services.
Service revenue was seasonally stronger, up 4.2% on the September quarter. However year on year prepaid voice revenue growth was
impacted by the strong performance in the prior year December quarter when we experienced a boost to voice revenue from the
addition of high volumes of unprofitable calling card prepaid customers. As previously communicated, we took corrective action from
October 2012 to improve our customer base and reduce the volume of these once-off usage customers. As expected, we have seen
reduced revenue, higher churn and net disconnections in the quarter. However we have seen a reduction in our prepaid acquisition
costs and improved profitability in the prepaid customer base.
Active customers increased 11.7% year on year to 30.6 million as we continued to attract new customers to our network through
value offers and network investment. Prepaid active customers increased 13.2% to 24.7 million but overall usage was lower than
expected as customers benefited from various promotional offers resulting in prepaid ARPU declining 15.6% to R81. Contract
customers increased 6.0% to 5.9 million, adding almost double the net connections reported in each of the prior two quarters to
approximately 120 000 customers. The continued reduction of out of bundle voice spend contributed to the 9.1% decline in contract
customer ARPU to R329. Our new integrated plans, our strategy of offering "much-more-for-more" ('MM4M') and our "double your
summer" promotion resulted in an 8.9% decline in blended effective price per minute in the quarter. There has been a strong uptake
in the integrated voice, SMS and data price plans launched in July 2012 with almost a third of new mobile contract customers during
the quarter opting for these plans.
Data revenue increased 17.2% to R2.3 billion, contributing 18.0% to service revenue compared to 15.1% a year ago. Data traffic grew
29.8% which more than offset the 13.5% reduction in our average effective price per MB. Smartphones remain a key strategic growth
driver with active smartphones increasing 29.2% to 5.8 million devices. Smartphone net additions increased in the quarter compared
to prior quarters, adding over 500 000 to our network largely supported by our working capital investment in handset financing.
Smartphone usage increased 36.1% to 138 MB per smartphone customer per month. The appetite for data services amongst our
customer base remains strong, with active data customers increasing 20.9% to 13.8 million representing 45.2% of our customer base.
Customers purchasing data bundles are growing at 31.6% to 5.1 million as we execute on our strategy to move customers to bundles.
Continued network investment is an important differentiator for Vodacom. Our LTE services now include data, voice and SMS services
and we have reached over 540 LTE sites covering major cities. We made further significant investments to improve the speed and
coverage of our 3G network adding 317 base stations in the quarter to 5 855. We also continue to invest in increasing the capacity of
our voice network to support higher customer usage.

International
Reported service revenue declined 4.1% to R2.8 billion due to the sale of Gateway Carrier Services. Excluding the sale and the impact
from movements in foreign currency, service revenue increased 22.0%*. Improved distribution and focussed customer value
propositions have resulted in active customers increasing 12.9% to 20.4 million and outgoing traffic increasing by 69.3% more than
offsetting the pricing pressures in most of our markets.
Data revenue increased 100.0% to R306 million, contributing 11.0% to service revenue compared to 5.3% a year ago driven by the
increased take up of mobile internet services in all markets and the increased penetration of mobile financial services in Tanzania.
Data customers grew 95.4% to 4.7 million; almost a quarter of our active customer base is now actively using data.
M-Pesa is progressing well in Tanzania, with active customers increasing 72.6% to 4.7 million and M-Pesa revenue now accounts for
74.6% of Tanzania's overall data revenue and 14.1% of service revenue. We launched M-Pesa in DRC in the period and expect to
expand the service to Mozambique and Lesotho before year end.
We have accelerated our capital expenditure programme in Tanzania to improve capacity and coverage.
The quarterly information has not been audited or reviewed by Vodacom's external auditors.


Financial review for the quarters ended
Revenue
                                                                                                           Year on year                         Quarterly
                                               December         September         December                 % change                             % change
Rm                                                 2012              2012             2011          Reported        Normalised*          Reported     Normalised*
South Africa                                     15 475            14 426           15 135               2.2                2.2               7.3             7.3
International                                     2 875             3 058            2 983             (3.6)               21.1             (6.0)             6.2
Corporate and eliminations                         (56)              (82)            (121)              53.7              (5.7)              31.7          (16.7)
Revenue                                          18 294            17 402           17 997               1.7                4.8               5.1             7.1

Service revenue
                                                                                                            Year on year                        Quarterly
                                               December         September         December                  % change                            % change
Rm                                                 2012              2012             2011           Reported       Normalised*          Reported    Normalised*
South Africa                                     12 532            12 031           12 755              (1.7)             (1.7)               4.2            4.2
International                                     2 786             2 964            2 905              (4.1)              22.0             (6.0)            6.8
Corporate and eliminations                         (20)              (56)             (93)               78.5              23.1              64.3            9.1
Service revenue                                  15 298            14 939           15 567              (1.7)               1.9               2.4            4.7

Key indicators for the quarters ended
South Africa key indicators
                                                                 December            September             December         Year on year              Quarterly
                                                                     2012                 2012                 2011             % change               % change
Active customers (thousand)1                                       30 581               30 783               27 373                 11.7                  (0.7)
Prepaid                                                            24 712               25 031               21 835                 13.2                  (1.3)
Contract                                                            5 869                5 752               5 538                   6.0                    2.0
Churn (%)2							     54.9                 46.8                 30.7
Prepaid                                                              62.9                 53.3                 35.3
Contract                                                              9.4                  9.7                 10.1
Traffic (millions of minutes)3					    9 631                9 940                9 012                  6.9                 (3.1)
Outgoing                                                            7 238                7 634                6 741                  7.4                 (5.2)
Incoming                                                            2 393                2 306                2 271                  5.4                   3.8
MOU per month4							      105                  107                  114                (7.9)                 (1.9)
Prepaid                                                                93                   95                   99                (6.1)                 (2.1)
Contract                                                              156                  158                  171                (8.8)                 (1.3)
Total ARPU (rand per month)5					      134                  127                  161               (16.8)                   5.5
Prepaid                                                                81                   74                   96               (15.6)                   9.5
Contract                                                              329                  337                  362                (9.1)                 (2.4)

Notes:
     1.    Active customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a
           monthly fee that entitles them to use the service even if they do not actually use the service and those customers who are active whilst roaming.
     2.    Churn is calculated by dividing the annualised number of disconnections during the period by the average monthly customers during the period.
     3.    Traffic comprises total traffic registered on Vodacom's mobile network, including bundled minutes, promotional minutes and outgoing international
           roaming calls, but excluding national roaming calls, incoming international roaming calls and calls to free services.
     4.    Minutes of use ('MOU') per month is calculated by dividing the average monthly minutes (traffic) during the period by the average monthly active customers
           during the period.
     5.    Total ARPU is calculated by dividing the average monthly service revenue by the average monthly active customers during the period. Prepaid and contract
           ARPU only include service revenue generated from Vodacom mobile customers.



Key indicators for the quarters ended (continued)
International key indicators
                                                                    December            September             December         Year on year             Quarterly
                                                                        2012                 2012                 2011             % change              % change
Active customers (thousand)1                                          20 375               19 341               18 047                 12.9                   5.3
Tanzania                                                               9 357                8 968                9 417                (0.6)                   4.3
DRC                                                                    7 086                6 696                5 118                 38.5                   5.8
Mozambique                                                             2 861                2 734                2 717                  5.3                   4.6
Lesotho                                                                1 071                  943                  795                 34.7                  13.6
Churn (%)2
Tanzania                                                                60.1                 78.7                 37.7
DRC                                                                     69.2                 83.0                 66.5
Mozambique                                                              73.2                 61.1                 48.2
Lesotho                                                                 38.9                 50.5                 24.3
MOU per month3
Tanzania                                                                 102                   88                   62                64.5                  15.9
DRC                                                                       48                   46                   42                14.3                   4.3
Mozambique                                                                86                   75                   57                50.9                  14.7
Lesotho                                                                   34                   32                   37               (8.1)                   6.3
Total ARPU (rand per month)4
Tanzania                                                                  40                   39                   28                42.9                   2.6
DRC                                                                       35                   36                   38               (7.9)                 (2.8)
Mozambique                                                                64                   47                   62                 3.2                  36.2
Lesotho                                                                   57                   57                   74              (23.0)                     –
Total ARPU (local currency per month)4
Tanzania (TZS)                                                         7 317                7 446                5 770                26.8                 (1.7)
DRC (USD)                                                                4.1                  4.3                  4.7              (12.8)                 (4.7)
Mozambique (MZN)                                                         217                  161                  204                 6.4                  34.8
Notes:

     1.   Active customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a
          monthly fee that entitles them to use the service even if they do not actually use the service and those customers who are active whilst roaming.
     2.   Churn is calculated by dividing the annualised number of disconnections during the period by the average monthly customers during the period. During the
          quarter ended 30 June 2012, Tanzania, Mozambique and Lesotho changed their disconnection policy from 215 days to 90 days inactivity.
     3.   Minutes of use ('MOU') per month is calculated by dividing the average monthly minutes (traffic) during the period by the average monthly active customers
          during the period.
     4.   Total ARPU is calculated by dividing the average monthly service revenue by the average monthly active customers during the period.





Financial review for the quarters ended
Historical financial review for the quarters ended

Revenue
                                     December    September     June     March     December   September           June
 Rm                                      2012         2012     2012      2012         2011        2011           2011
 South Africa                          15 475       14 426    14 007    14 379      15 135      13 881         13 537
 International                          2 875        3 058     3 097     2 930       2 983       2 394          2 119
 Corporate and eliminations              (56)         (82)      (80)     (124)      (121)         (97)           (87)
 Revenue                               18 294       17 402    17 024    17 185      17 997      16 178         15 569



Service revenue
                                     December    September      June    March     December   September           June
 Rm                                      2012         2012      2012     2012         2011        2011           2011
 South Africa                          12 532       12 031    11 769    12 167      12 755      11 947         11 558
 International                          2 786        2 964     3 028     2 848       2 905       2 326          2 064
 Corporate and eliminations              (20)         (56)      (61)      (89)       (93)         (73)           (70)
 Service revenue                       15 298       14 939    14 736    14 926      15 567      14 200         13 552



Key indicators for the quarters ended
Historical key indicators for the quarters ended

South Africa
                                     December    September      June    March     December   September           June
                                         2012         2012      2012     2012         2011        2011           2011
 Active customers (thousand)1          30 581       30 783    30 970    28 941      27 373      25 261         23 991
 Prepaid                               24 712       25 031    25 284    23 312      21 835      19 822         18 671
 Contract                               5 869        5 752     5 686     5 629       5 538       5 439          5 320
 Churn (%)2                              54.9         46.8      37.8      36.7        30.7        44.6           35.5
 Prepaid                                 62.9         53.3      43.3      42.4        35.3        53.0           41.9
 Contract                                 9.4          9.7       8.7       8.3        10.1         8.9            8.5
 Traffic (millions of minutes)3		9 631        9 940     8 657     8 690       9 012       9 186          8 141
 Outgoing                               7 238        7 634     6 459     6 471       6 741       7 050          6 079
 Incoming                               2 393        2 306     2 198     2 219       2 271       2 136          2 062
 MOU per month4				  105         107        96       103         114         125            116
 Prepaid                                   93          95        81        85          99         109             97
 Contract                                 156         158       158       174         171         181            181
 Total ARPU (rand per month)5             134         127       130       144         161         162            164
 Prepaid                                   81          74        73        83          96          92             95
 Contract                                 329         337       333       348         362         370            369



Key indicators for the quarters ended (continued)
Historical key indicators for the quarters ended (continued)

International
                                                    December        September             June            March          December        September             June
                                                        2012             2012             2012             2012              2011             2011             2011
 Active customers (thousand)1                         20 375           19 341           18 971           18 894            18 047           16 225           14 657
 Tanzania                                              9 357            8 968            9 065            9 665             9 417            8 432            7 656
 DRC                                                   7 086            6 696            6 240            5 643             5 118            4 782            4 245
 Mozambique                                            2 861            2 734            2 700            2 784             2 717            2 275            2 054
 Lesotho                                               1 071              943              966              802               795              736              702
 Churn (%)2
 Tanzania                                               60.1             78.7             72.5              41.8             37.7             35.2             43.5
 DRC                                                    69.2             83.0             75.6              72.2             66.5             64.3             75.3
 Mozambique                                             73.2             61.1             54.0              40.8             48.2            111.7             42.5
 Lesotho                                                38.9             50.5             22.0              21.6             24.3             24.5             20.3
 MOU per month4
 Tanzania                                                102               88               66               57                62               69               65
 DRC                                                      48               46               43               40                42               47               43
 Mozambique                                               86               75               63               56                57               50               55
 Lesotho                                                  34               32               35               40                37               39               36
 Total ARPU (rand per month)5
 Tanzania                                                 40               39               31               26                28               24               23
 DRC                                                      35               36               34               35                38               37               33
 Mozambique                                               64               47               58               52                62               49               39
 Lesotho                                                  57               57               60               66                74               71               68
 Total ARPU (local currency per
 month)5
 Tanzania (TZS)                                        7 317            7 446            5 945            5 365            5 770            5 508            5 213
 DRC (USD)                                               4.1              4.3              4.2              4.5              4.7              5.1              4.7
 Mozambique (MZN)                                        217              161              193              181              204              187              172

Notes:

     1.     Active customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a
            monthly fee that entitles them to use the service even if they do not actually use the service and those customers who are active whilst roaming.
     2.     Churn is calculated by dividing the annualised number of disconnections during the period by the average monthly customers during the period. During the
            quarter ended 30 June 2012, Tanzania, Mozambique and Lesotho changed their disconnection policy from 215 days to 90 days inactivity.
     3.     Traffic comprises total traffic registered on Vodacom's mobile network, including bundled minutes, promotional minutes and outgoing international
            roaming calls, but excluding national roaming calls, incoming international roaming calls and calls to free services.
     4.     Minutes of use ('MOU') per month is calculated by dividing the average monthly minutes (traffic) during the period by the average monthly active customers
            during the period.
     5.     Total ARPU is calculated by dividing the average monthly service revenue by the average monthly active customers during the period. Prepaid and contract
            ARPU only include service revenue generated from Vodacom mobile customers.




Revenue for the quarter ended 31 December 2012

                                         South Africa          Yoy %          International         Yoy %           Corporate/                  Group         Yoy %
 Rm                                                           change                               change          Eliminations                              change
 Mobile voice                                   7 573          (2.3)                  1 719          19.4                   (2)                 9 290           1.1
 Mobile interconnect                            1 317         (18.2)                    311          46.0                   (8)                 1 620         (9.6)
 Mobile messaging                                 777          (5.6)                    122          62.7                     –                   899           0.1
 Mobile data                                    2 261          17.2                     306         100.0                     –                 2 567          23.3
 Other service revenue                            604          (5.5)                    328        (68.0)                  (10)                   922        (42.4)
 Service revenue                               12 532          (1.7)                  2 786         (4.1)                  (20)                15 298         (1.7)
 Equipment revenue                              2 808          27.2                      41           5.1                   (8)                 2 841          27.1
 Non-service revenue                              135         (21.5)                     48          23.1                  (28)                   155        (20.1)
 Revenue                                       15 475            2.2                  2 875         (3.6)                  (56)                18 294           1.7

Reconciliation of normalised growth
Year on year reconciliation

                                                                               Translation foreign                  Gateway Carrier
                                                           Reported1                     exchange2                        Services3                  Normalised
                                                            % change                           ppt                              ppt                    % change
                                                               11/12                                                                                      11/12
Revenue
Group                                                            1.7                         (1.2)                              4.3                         4.8
International                                                  (3.6)                         (6.4)                             31.1                        21.1
Service revenue
Group                                                          (1.7)                         (1.3)                              4.9                         1.9
International                                                  (4.1)                         (6.3)                             32.4                        22.0

The reconciliation represents normalised growth at a constant currency (using current period as base) from on-going operations. The
presentation of the pro-forma constant currency information from on-going operations is the responsibility of the directors of
Vodacom Group Limited. The purpose to presenting this information is to assist the user in understanding the underlying growth
trends in these segments. It has been prepared for illustrative purposes only and may not fairly present the financial position, changes
in equity, results of operations or cash flows of Vodacom Group Limited. This information has not been reviewed and reported on by
the Group's auditors.

Notes:
1.   The reported percentage change relates to the quarter to date year on year percentage growth between 31 December 2011 and 31 December 2012. The Group's
     presentation currency is the South African rand. Our International operations include functional currencies in United States dollar, Tanzanian shilling and
     Mozambican metical. The prevailing exchange for the current and comparative periods are disclosed below.
2.   Translation foreign exchange arises from the translation of the results, at average rates, of subsidiaries' functional currencies to Vodacom's presentation currency,
     being rand. The exchange variances are eliminated by applying the quarter 31 December 2012 average rate (which is derived by dividing the individual subsidiary's
     translated rand value with the functional currency for the quarter) to 31 December 2011 quarter numbers, thereby giving a user a view of the performance which
     excludes exchange variances. The prevailing exchange rate for the current and comparative quarters are disclosed below.
3.   The Group disposed of its subsidiary, Gateway Carrier Services, effective 31 August 2012. We have excluded Gateway Carrier Services from the above calculation
     to give the user insight into the underlying performance of our on-going operations.




Quarter on quarter reconciliation

                                                                             Translation foreign                Gateway Carrier
                                                        Reported1                      exchange2                      Services3                    Normalised
                                                         % change                            ppt                            ppt                      % change
                                                            11/12                                                                                       11/12
Revenue
Group                                                         5.1                          (0.7)                            2.7                           7.1
International                                               (6.0)                          (3.8)                           16.0                           6.2
Service revenue
Group                                                         2.4                          (0.8)                            3.1                           4.7
International                                               (6.0)                          (3.8)                           16.6                           6.8

The reconciliation represents normalised growth at a constant currency (using current year as base) from on-going operations. The
presentation of the pro-forma constant currency information from on-going operations is the responsibility of the directors of
Vodacom Group Limited. The purpose to presenting this information is to assist the user in understanding the underlying growth
trends in these segments. It has been prepared for illustrative purposes only and may not fairly present the financial position, changes
in equity, results of operations or cash flows of Vodacom Group Limited. This information has not been reviewed and reported on by
the Group's auditors.

Notes:
1.   The reported percentage change relates to the quarter to date quarter on quarter percentage growth between 30 September 2012 and 31 December 2012. The
     Group's presentation currency is the South African rand. Our International operations include functional currencies in United States dollar, Tanzanian shilling and
     Mozambican metical. The prevailing exchange for the current and comparative periods are disclosed below.
2.   Translation foreign exchange arises from the translation of the results, at average rates, of subsidiaries' functional currencies to Vodacom's presentation currency,
     being rand. The exchange variances are eliminated by applying the quarter 31 December 2012 average rate (which is derived by dividing the individual subsidiary's
     translated rand value with the functional currency for the quarter) to 30 September 2012 numbers, thereby giving a user a view of the performance which
     excludes exchange variances. The prevailing exchange rate for the current and comparative quarters are disclosed below.
3.   The Group disposed of its subsidiary, Gateway Carrier Services, effective 31 August 2012. We have excluded Gateway Carrier Services from the above calculation
     to give the user insight into the underlying performance of our on-going operations.


Average quarterly exchange rates

                                                                    December              September            December         Year on year            Quarterly
                                                                        2012                   2012                2011             % change             % change
USD/ZAR                                                                 8.69                   7.15                8.10                  7.3                 21.5
ZAR/MZN                                                                 3.40                   3.86                3.32                  2.4               (11.9)
ZAR/TZS                                                               183.01                 226.02              208.36               (12.2)               (19.0)
EUR/ZAR                                                                11.28                  10.09               10.92                  3.3                11.8




Non-GAAP information
This trading statement contains certain non-GAAP financial information which has not been reviewed or reported on by the Group's
auditors. The Group's management believes these measures provide valuable additional information in understanding the
performance of the Group or the Group's businesses because they provide measures used by the Group to assess performance.
However, this additional information presented is not uniformly defined by all companies, including those in the Group's industry.
Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies. Additionally, although
these measures are important in the management of the business, they should not be viewed in isolation or as replacements for or
alternatives to, but rather as complementary to, the comparable GAAP measures.

Trademarks
Vodafone, the Vodafone logo, Vodacom and Vodacom M-Pesa, are trademarks of Vodafone Group Plc (or have applications pending).
Other product and company names mentioned herein may be trademarks of their respective owners.

Forward-looking statements
This trading statement which sets out the quarterly results for Vodacom Group Limited for the quarter ended 31 December 2012
contains 'forward-looking statements', which have not been reviewed or reported on by the Group's auditors, with respect to the
Group's financial condition, results of operations and businesses and certain of the Group's plans and objectives. In particular, such
forward-looking statements include statements relating to: the Group's future performance; future capital expenditures, acquisitions,
divestitures, expenses, revenues, financial conditions, dividend policy, and future prospects; business and management strategies
relating to the expansion and growth of the Group; the effects of regulation of the Group's businesses by governments in the countries
in which it operates; the Group's expectations as to the launch and roll out dates for products, services or technologies; expectations
regarding the operating environment and market conditions; growth in customers and usage; and the rate of dividend growth by the
Group.
Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'will',
'anticipates', 'aims', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans' or 'targets'. By their nature, forward-looking statements
are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future, involve known and unknown risks, uncertainties and other facts or factors which may cause the actual
results, performance or achievements of the Group, or its industry to be materially different from any results, performance or
achievement expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future
performance and are based on assumptions regarding the Group's present and future business strategies and the environments in
which it operates now and in the future.

Sponsor: UBS South Africa (Pty) Limited
Debt sponsor: Absa Capital (the investment banking division of Absa Bank Limited and affiliated with Barclays)

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