Wrap Text
Vodacom Group Limited quarterly update for the period ended 30 June 2015
Vodacom Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/005461/06)
ISIN: ZAE000132577 Share code: VOD
ISIN: US92858D2009 ADR code: VDMCY
('Vodacom')
News release
Vodacom Group Limited quarterly update for the period ended 30 June 2015
23 July 2015
Salient features
- Group revenue increased 7.0% (6.5%*) to R19 559 million with service revenue up 5.1% (4.7%*) to R15 660 million
- Group data revenue accelerated 35.2% to R4 846 million, representing 30.9% of service revenue
- Group active customers up 6.5% to 63.5 million and active data customers grew 10.8% to 28.0 million
- South Africa service revenue grew 2.8% to R11 762 million driven by strong data revenue growth of 34.8%
- International operations' service revenue increased 12.9% (11.3%*) to R3 945 million; 25.2% of Group service revenue
- Capital expenditure of R2 398 million was focused on LTE/4G rollout and expanding 3G coverage
All growth rates quoted are year-on-year growth rates and refer to Quarter 1, 2016 vs. Quarter 1, 2015, unless stated otherwise.
Quarter ended Yoy % change
Rm June 2015 Reported Normalised*
Revenue 19 559 7.0 6.5
South Africa 15 598 5.5 5.5
International 4 095 14.0 11.9
Service revenue 15 660 5.1 4.7
South Africa 11 762 2.8 2.8
International 3 945 12.9 11.3
Shameel Joosub, Vodacom Group CEO commented:
During the first quarter of our new financial year we delivered solid growth, which was a continuation of the positive growth
momentum we saw in the fourth quarter last year. We've increased our customer base by 3.9 million year-on-year to 63.5 million and
revenue grew 7.0% to R19.6 billion.
We invested another R2.4 billion in the network this quarter as part of the accelerated capital investment programme started towards
the end of the 2014 financial year, resulting in wider coverage and faster connection speeds. The increased capacity supported data
traffic growth of 45.7% in South Africa and 140.4% in our International operations, which in turn led to Group data revenue increasing
35.2%. Vodacom's 3G service covers 96.4% and LTE/4G service covers 40.9% of the population in South Africa. We increased the
number of 3G sites in our International operations by 49.8%.
Smart devices remain extremely popular, with approximately 12 million active on the network in South Africa which is almost 3 million
more than a year ago. The average amount of data used per smartphone in South Africa increased 24.8% to 408 MB per month.
We're nearing completion of our pricing transformation programme in South Africa with 80.7% of contract customers migrated to
better value integrated packages and prepaid customers buying on average 54.5 million voice bundles per month. This helped reduce
the blended average effective price by 14.7% to 58 cents per minute and drove an increase in voice traffic. In our International
operations, the key development was the stabilisation of pricing in Tanzania and the DRC.
The Competition Commission has made a recommendation to the Competition Tribunal that they approve the acquisition of Neotel,
subject to certain conditions. The matter will now be heard at the Competition Tribunal, with hearings set to take place from
23 November to 11 December 2015. The regulator, ICASA, has also approved the transaction subject to conditions that it has
submitted for comment. The transaction will ultimately result in increased investment in communications infrastructure and the
accelerated rollout of broadband connectivity in South Africa.
* Represents normalised growth at a constant currency (using current period as base). Refer below for a reconciliation of normalised growth.
Operating review
South Africa
Revenue increased 5.5% to R15 598 million, boosted by strong growth in data and increased equipment sales. Equipment revenue
grew 13.8%, representing 23.1% (2014: 21.4%) of revenue, as a result of an increase in smart device sales (smartphones, tablets and
modems). Smart devices accounted for 58.0% of equipment sold. This in line with our strategy of putting smart data capable devices
into the hands of more customers.
Service revenue returned to growth, increasing 2.8% to R11 762 million. This is following four consecutive quarters of negative
year-on-year reported growth that had been heavily impacted by mobile termination rate cuts. Our commercial and operational
performance during the period continued to improve, supported by a more stable pricing environment and accelerating data growth.
Customer service revenue grew 2.6% to R10 321 million. Voice traffic growth of 4.9% and data traffic growth of 45.7% more than
offset a 14.7% reduction in the blended effective price per minute to 58 cents and a 9.1% reduction in the average effective price per
MB. We continued executing on our pricing transformation strategy to offer best value to customers through adopting a clear
segmented approach, offering bundles at affordable and competitive prices, together with delivering worry free integrated plans.
Contract active customers (excluding machine-to-machine ('M2M')) increased 3.1% to 4.9 million as a result of higher gross
connections and greater customer loyalty. The emphasis on customer retention resulted in a reduction in contract churn to 7.2%,
down from 10.4% a year ago. Contract pricing transformation is nearing completion with 80.7% of contract customers migrated from
voice-centric plans to integrated plans. 63.0% of hybrid customers switched to uChoose packages which give customers access to
integrated plans with an option to access prepaid promotions on an ad hoc basis. Contract ARPU increased 3.8% to R386, as we
continue to see the early benefits to ARPU of LTE/4G migration and increased data usage. 70.6% of contract spend is now in-bundle
compared to 68.2% a year ago.
Prepaid active customers increased 2.3% to 28.4 million. Voice bundles, supported by the continued adoption of our More Power
promotions, are proving increasingly popular, with the average number of voice bundles sold increasing 29.3% to 54.5 million per
month. This helped drive continued price transformation, reducing the average effective prepaid price per minute by 13.0%. Customer
Value Management, through which customers' needs are analysed and product offerings tailored for each individual, is playing an
important role in driving increased customer activity and value generated.
Data revenue growth accelerated 34.8% to R3 975 million, with a 45.7% growth in data traffic, building on the improved data
monetisation and efficiency trend we saw in Q4 2015. Wider coverage, together with higher smart device penetration and increased
sales of data bundles, underpinned the strong growth in data revenue and more than offset a reduction in the effective price per MB.
Data revenue now accounts for 33.8% of service revenue (2014: 25.8%), with active data customers (excluding M2M) of 17.7 million,
representing 53.3% of active customers. LTE/4G customers increased 117.4% to 1.8 million and M2M customers increased 16.9% to
1.8 million. The number of active smart devices on the network increased 31.9% to 11.9 million. We continue to see upward migration
to larger data bundles within our customer base, as reflected in the 24.8% increase in the average monthly consumption of data per
smartphone. Smartphones and tablets used on average 408 MB and 774 MB per month respectively. The average number of data
bundles sold per month more than doubled year-on-year to over 23 million.
Capital expenditure of R1 721 million was focused on expanding 3G and LTE/4G sites to increase data capacity and provide
customers with the best network experience. During the quarter we added 229 3G sites to total 9 031 sites and 572 LTE/4G sites to
total 3 172 sites, respectively covering 96.4% and 40.9% of the South African population.
As announced on 2 July 2015, we obtained approval for the Neotel transaction ('the Transaction') from the Independent
Communications Authority ('ICASA') and a positive recommendation on the Transaction from the Competition Commission of
South Africa to the Competition Tribunal, both of which are subject to certain conditions. We await the outcome of the Competition
Tribunal and the ICASA public commentary processes.
International
Service Revenue increased 12.9% (11.3%*) to R3 945 million, representing 25.2% of Group service revenue. Growth in service
revenue was supported by strong data growth and an 11.5% increase in customers to 30.2 million. The pricing environment in
Tanzania has stabilised, supporting stronger service revenue growth as we migrate customers to integrated bundles and drive
increased data adoption. In the DRC, we achieved an encouraging increase in service revenue, due to the adherence by all operators to
the minimum price floor and through implementing a revised approach to customer segmentation with simpler price points.
Mozambique and Lesotho continue to deliver strong growth.
Data revenue grew 36.9% to R871 million. The number of active data customers increased 23.8% to 10.3 million, and data traffic
grew 140.4%. We continue to focus on our commercial and network offering to drive data growth, ensuring our customers have access
to better low cost smart devices, such as Vodacom Kicka and SmartTab, expanding 3G network coverage and driving the adoption of
data bundles. Data contributes 22.1% of service revenue.
m-pesa continues to gain traction in all our markets, fuelled by expansion in the distribution channel and a growing ecosystem.
m-pesa revenue grew 16.1%, underpinned by strong m-pesa customer growth of 18.1% to 7.8 million#. Following the launch of
m-pawa last year, 9.8% of m-pesa customers in Tanzania are actively using the savings and loans product.
We continued to invest in our network to differentiate our offering in terms of network coverage and performance. The number of 3G
sites increased 49.8% year-on-year to support strong data growth and 2G sites expanded 31.9% year-on-year to extend our voice
coverage.
The quarterly information has not been audited or reviewed by Vodacom's external auditors.
# Number of unique customers who have generated revenue related to and m-pesa activities in relation to m-pesa in the past 90 days, of these 5.6 million have been
active in the past 30 days in International.
Financial review
Revenue for the quarter ended
June March June Yoy % change Quarterly % change
Rm 2015 2015 2014 Reported Normalised* Reported Normalised*
South Africa 15 598 15 879^ 14 791 5.5 5.5 (1.8) (1.8)
International 4 095 4 081 3 591 14.0 11.9 0.3 3.5
Corporate and eliminations (134) (165) (95) (41.1) (41.1) 18.8 18.8
Revenue 19 559 19 795 18 287 7.0 6.5 (1.2) (0.6)
Service revenue for the quarter ended
June March June Yoy % change Quarterly % change
Rm 2015 2015 2014 Reported Normalised* Reported Normalised*
South Africa 11 762 11 739^ 11 442 2.8 2.8 0.2 0.2
International 3 945 3 950 3 493 12.9 11.3 (0.1) 3.1
Corporate and eliminations (47) (62) (38) (23.7) (23.7) 24.2 24.2
Service revenue 15 660 15 627 14 897 5.1 4.7 0.2 1.0
Revenue for the quarter ended 30 June 2015
South Africa Yoy % International Yoy % Corporate/ Group Yoy %
Rm Change change Eliminations change
Mobile contract revenue 5 430 5.8 266 15.7 (1) 5 695 6.2
In bundle 3 835 9.5 63 - 1 3 899 9.3
Out of bundle 1 595 (2.2) 203 21.6 (2) 1 796 -
Mobile prepaid revenue 4 891 (0.7) 2 903 16.1 - 7 794 5.0
In bundle 910 45.4 486 21.8 - 1 396 36.2
Out of bundle 3 981 (7.4) 2 417 15.0 - 6 398 -
Mobile customer revenue 10 321 2.6 3 169 16.0 (1) 13 489 5.5
Mobile interconnect 503 (3.5) 335 (12.1) (30) 808 (8.3)
Other service revenue 938 8.6 441 15.7 (16) 1 363 11.1
Service revenue 11 762 2.8 3 945 12.9 (47) 15 660 5.1
Equipment revenue 3 597 13.8 98 78.2 (21) 3 675 14.6
Non-service revenue 239 26.5 52 20.9 (66) 224 23.1
Revenue 15 598 5.5 4 095 14.0 (134) 19 559 7.0
Of which mobile voice 5 891 (10.6) 2 146 10.1 (2) 8 035 (5.9)
Of which mobile messaging 632 3.9 157 6.1 - 789 4.4
Of which mobile data 3 975 34.8 871 36.9 - 4 846 35.2
Notes:
- Mobile in-bundle revenue: Represents revenue from bundles that include a specified number of minutes, messages or megabytes of data that can be used for no
additional charge, with some expectation of recurrence.
- Mobile in-bundle revenue - Contract: Revenue from all bundles and add-ons lasting 30 days or more.
- Mobile in-bundle revenue - Prepay: Revenue from bundles lasting seven days or more.
- Out-of-bundle: Revenue from minutes, messages or megabytes of data which are in excess of the amount included in customer bundles.
^ During Q4 2015 we consolidated a subsidiary X-Link resulting in a positive adjustment of R164 million in South Africa.
* Represents normalised growth at a constant currency (using current period as base). Refer below for a reconciliation of normalised growth.
Revenue for the quarter ended 30 June 2014
South Africa Yoy % International Yoy % Corporate/ Group Yoy %
Rm Change change Eliminations change
Mobile contract revenue 5 133 (2.0) 230 22.3 (1) 5 362 (1.1)
In bundle 3 502 5.9 63 12.5 1 3 566 6.1
Out of bundle 1 631 (15.5) 167 26.5 (2) 1 796 (12.8)
Mobile prepaid revenue 4 924 3.0 2 501 15.9 - 7 425 7.0
In bundle 626 80.9 399 >200.0 - 1 025 154.3
Out of bundle 4 298 (3.1) 2 102 0.1 - 6 400 (2.1)
Mobile customer revenue 10 057 0.4 2 731 16.5 (1) 12 787 3.5
Mobile interconnect 521 (44.0) 381 26.6 (21) 881 (27.9)
Other service revenue 864 18.2 381 14.4 (16) 1 229 16.5
Service revenue 11 442 (2.0) 3 493 17.3 (38) 14 897 1.8
Equipment revenue 3 160 16.9 54 25.6 (6) 3 208 17.0
Non-service revenue 189 12.5 44 - (51) 182 15.9
Revenue 14 791 1.7 3 591 17.2 (95) 18 287 4.3
Of which mobile voice 6 589 (5.3) 1 949 8.0 (2) 8 536 (2.6)
Of which mobile messaging 608 (9.9) 148 21.3 - 756 (5.0)
Of which mobile data 2 948 18.4 636 51.1 - 3 584 23.2
Notes:
- Mobile in-bundle revenue: Represents revenue from bundles that include a specified number of minutes, messages or megabytes of data that can be used for no
additional charge, with some expectation of recurrence.
- Mobile in-bundle revenue - Contract: Revenue from all bundles and add-ons lasting 30 days or more.
- Mobile in-bundle revenue - Prepay: Revenue from bundles lasting seven days or more.
- Out-of-bundle: Revenue from minutes, messages or megabytes of data which are in excess of the amount included in customer bundles.
Key indicators
South Africa
June March June Yoy Quarterly
2015 2015 2014 % change % change
Active customers1 (thousand) 33 309 32 115 32 516 2.4 3.7
Prepaid 28 368 27 202 27 723 2.3 4.3
Contract 4 941 4 913 4 793 3.1 0.6
Active data customers2 (thousand) 17 741 16 595 16 996 4.4 6.9
Machine to machine customers (thousand) 1 767 1 672 1 512 16.9 3.7
MOU per month3 124 129 122 1.6 (3.9)
Prepaid 113 118 112 0.9 (4.2)
Contract 184 188 181 1.7 (2.1)
Total ARPU4 (rand per month) 110 113 110 - (2.7)
Prepaid 62 64 64 (3.1) (3.1)
Contract 386 374 372 3.8 3.2
Traffic5 (millions of minutes) 12 181 12 158 11 776 3.4 0.2
Outgoing 9 856 9 741 9 392 4.9 1.2
Incoming 2 325 2 417 2 384 (2.5) (3.8)
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. Active data customers are a number of unique users who have generated revenue related to any data activities in the reported month (this excludes SMS and
MMS messaging users). A unique user is a customer who needs to be counted once regardless of what data services they have utilised.
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. Prepaid and contract
ARPU only include service revenue generated from Vodacom mobile customers.
5. 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.
International
June March June Yoy Quarterly
2015 2015 2014 % change % change
Active customers1 (thousand) 30 193 29 533 27 086 11.5 2.2
Tanzania 11 996 12 172 10 638 12.8 (1.4)
DRC 11 922 11 216 10 502 13.5 6.3
Mozambique 5 031 4 877 4 604 9.3 3.2
Lesotho 1 244 1 268 1 342 (7.3) (1.9)
Active data customers2 (thousand) 10 292 9 878 8 311 23.8 4.2
Tanzania 5 501 5 265 4 480 22.8 4.5
DRC 2 332 2 338 2 016 15.7 (0.3)
Mozambique 2 046 1 879 1 474 38.8 8.9
Lesotho 413 396 341 21.1 4.3
MOU per month3
Tanzania 120 123 158 (24.1) (2.4)
DRC 34 33 39 (12.8) 3.0
Mozambique 97 89 131 (26.0) 9.0
Lesotho 68 63 48 41.7 7.9
Total ARPU4 (rand per month)
Tanzania 36 39 42 (14.3) (7.7)
DRC 35 32 31 12.9 9.4
Mozambique 51 51 49 4.1 -
Lesotho 62 60 43 44.2 3.3
Total ARPU4 (local currency per month)
Tanzania (TZS) 6 046 5 952 6 655 (9.2) 1.6
DRC (USD) 2.9 2.7 3.0 (3.3) 7.4
Mozambique (MZN) 154 146 146 5.5 5.5
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. Active data customers are a number of unique users who have generated revenue related to any data activities in the reported month (this excludes SMS and
MMS messaging users). A unique user is a customer who needs to be counted once regardless of what data services they have utilised.
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. ARPU has been restated
to only include service revenue generated from Vodacom mobile customers.
Historical financial review
Revenue
June March December September June March December
Rm 2015 2015 2014 2014 2014 2014 2013
South Africa 15 598 15 879^ 15 987 15 380^^ 14 791 15 170 16 502
International 4 095 4 081 4 092 3 984 3 591 3 798 3 838
Corporate and eliminations (134) (165) (86) (105) (95) (164) (121)
Revenue 19 559 19 795 19 993 19 259 18 287 18 804 20 219
Service revenue
June March December September June March December
Rm 2015 2015 2014 2014 2014 2014 2013
South Africa 11 762 11 739^ 11 856 11 995^^ 11 442 11 982 12 587
International 3 945 3 950 3 975 3 873 3 493 3 684 3 695
Corporate and eliminations (47) (62) (16) (40) (38) (80) (34)
Service revenue 15 660 15 627 15 815 15 828 14 897 15 586 16 248
Historical key indicators
South Africa
June March December September June March December
2015 2015 2014 2014 2014 2014 2013
Active customers1 (thousand) 33 309 32 115 31 379 32 613 32 516 31 520 30 964
Prepaid 28 368 27 202 26 479 27 806 27 723 26 726 26 123
Contract 4 941 4 913 4 900 4 807 4 793 4 794 4 841
Active data customers2 (thousand) 17 741 16 595 16 751 16 679 16 996 15 172 15 314
Machine-to-machine customers (thousand) 1 767 1 672 1 613 1 578 1 512 1 443 1 378
MOU per month3 124 129 130 124 122 122 124
Prepaid 113 118 120 113 112 112 113
Contract 184 188 188 190 181 179 183
Total ARPU4 (rand per month) 110 113 116 115 110 119 129
Prepaid 62 64 67 67 64 71 80
Contract 386 374 386 389 372 379 393
Traffic5 (millions of minutes) 12 181 12 158 12 402 12 182 11 776 11 453 11 298
Outgoing 9 856 9 741 9 827 9 570 9 392 9 193 8 928
Incoming 2 325 2 417 2 575 2 612 2 384 2 260 2 370
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. Active data customers are a number of unique users who have generated revenue related to any data activities in the reported month (this excludes SMS and
MMS messaging users). A unique user is a customer who needs to be counted once regardless of what data services they have utilised.
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. Prepaid and contract
ARPU only include service revenue generated from Vodacom mobile customers.
5. 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.
^ During Q4 2015 we consolidated a subsidiary X-Link resulting in a positive adjustment of R164 million in South Africa.
^^ During Q2 2015 we changed our accounting estimates for unexpired credits for prepaid voucher deferrals resulting in a positive adjustment of R325 million in
South Africa.
International
June March December September June March December
2015 2015 2014 2014 2014 2014 2013
Active customers1 (thousand) 30 193 29 533 29 676 28 367 27 086 25 969 25 019
Tanzania 11 996 12 172 11 810 11 316 10 638 10 284 10 289
DRC 11 922 11 216 11 493 11 003 10 502 10 008 9 334
Mozambique 5 031 4 877 5 049 4 913 4 604 4 333 4 120
Lesotho 1 244 1 268 1 324 1 135 1 342 1 344 1 276
Active data customers2 (thousand) 10 292 9 878 9 749 9 188 8 311 7 675 7 457
Tanzania 5 501 5 265 5 160 4 963 4 480 3 788 3 554
DRC 2 332 2 338 2 324 2 241 2 016 2 218 2 280
Mozambique 2 046 1 879 1 817 1 636 1 474 1 368 1 285
Lesotho 413 396 448 348 341 301 338
MOU per month3
Tanzania 120 123 154 165 158 131 131
DRC 34 33 45 47 39 31 33
Mozambique 97 89 111 124 131 118 104
Lesotho 68 63 69 58 48 49 51
Total ARPU4 (rand per month)
Tanzania 36 39 43 45 42 43 49
DRC 35 32 30 33 31 35 34
Mozambique 51 51 55 52 49 52 61
Lesotho 62 60 58 50 43 41 51
Total ARPU4 (local currency per month)
Tanzania (TZS) 6 046 5 952 6 593 6 978 6 655 6 377 7 700
DRC (USD) 2.9 2.7 2.7 3.1 3.0 3.2 3.4
Mozambique (MZN) 154 146 156 147 146 150 178
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. Active data customers are a number of unique users who have generated revenue related to any data activities in the reported month (this excludes SMS and
MMS messaging users). A unique user is a customer who needs to be counted once regardless of what data services they have utilised.
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. Prepaid and contract
ARPU only include service revenue generated from Vodacom mobile customers.
Reconciliation of normalised growth
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 of 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, and results of operations or cash flows of Vodacom Group Limited. This information has not been reviewed and reported on
by the Group's auditors.
Year-on-year reconciliation
Translation foreign
Reported+ exchange= Normalised
% change ppt % change
15/16 15/16
Revenue
Group 7.0 (0.5) 6.5
International 14.0 (2.1) 11.9
Service revenue
Group 5.1 (0.4) 4.7
International 12.9 (1.6) 11.3
Quarter on quarter reconciliation
Translation foreign
Reported> exchange< Normalised
% change ppt % change
15/16 15/16
Revenue
Group (1.2) 0.6 (0.6)
International 0.3 3.2 3.5
Service revenue
Group 0.2 0.8 1.0
International (0.1) 3.2 3.1
Notes:
+ The reported percentage change relates to the quarter to date year-on-year percentage growth between 30 June 2014 and 30 June 2015. The Group's
presentation currency is the South African rand. Our International operations include functional currencies for example in United States dollar, Tanzanian
shilling, Mozambican metical, Nigerian naira and Zambian kwacha. The prevailing exchange rates for the current and comparative periods are disclosed below.
= 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 30 June 2015 average rate (which is derived by dividing the individual
subsidiary's translated rand value with the functional currency for the quarter) to 30 June 2014 quarter numbers, thereby giving a user a view of the
performance which excludes exchange rate variances. The prevailing exchange rates for the current and comparative quarters are disclosed below.
> The reported percentage change relates to the quarter to date quarter on quarter percentage growth between 31 March 2015 and 30 June 2015. The Group's
presentation currency is the South African rand. Our International operations have functional currencies, other than the South African rand, which include the
United States dollar, Tanzanian shilling, Mozambican metical, Nigerian naira and Zambian kwacha. The prevailing exchange rates for the current and
comparative periods are disclosed below.
< 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 30 June 2015 average rate (which is derived by dividing the individual
subsidiary's translated rand value with the functional currency for the quarter) to 31 March 2015 numbers, thereby giving a user a view of the performance
which excludes exchange variances. The prevailing exchange rates for the current and comparative quarters are disclosed below.
Average quarterly exchange rates
June March June Yoy Quarterly
2015 2015 2014 % change % change
USD/ZAR 12.08 11.75 10.54 14.6 2.8
ZAR/MZN 3.03 2.88 2.99 1.3 5.2
ZAR/TZS 168.43 154.37 157.09 7.2 9.1
EUR/ZAR 13.37 13.22 14.46 (7.5) 1.1
The quarterly information has not been audited or reviewed by Vodacom's external auditors.
Trademarks
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Vodacom, Vodacom m-pesa, Vodacom m-pawa, Vodacom Millionaires, Vodacom4Less and Vodacom Change the World are
trademarks of Vodafone Group Plc (or have applications pending). Other product names mentioned herein may be trademarks of
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Forward-looking statements
This quarterly update which sets out the quarterly results for Vodacom Group Limited for the period ended 30 June 2015 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.
All subsequent oral or written forward-looking statements attributable to the Group or any member thereof or any persons acting on
their behalf are expressly qualified in their entirety by the cautionary statements above and below. Vodacom expressly disclaims any
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disseminate any updates or revisions to any forward-looking statements contained herein or to reflect any change in their
expectations with regard thereto or any change in events, conditions or circumstances on which any such forward-looking statement
is based.
Sponsor: UBS South Africa (Pty) Limited
ADR depository bank: Deutsche Bank Trust Company Americas
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