Vodacom Tanzania’s operating profit fell by 59.5 per cent to 8.1 billion during the quarter ending June 30, 2022 largely attributed to lower revenue due to the levy on mobile money transfers, withdrawals transactions and higher expenses.
During the period, the company’s total revenue fell by 3.8 per cent to 245.8bn/- largely attributed to pressure on service revenue.
The company’s Service Revenue also declined by 4.3 per cent to 40.9bn/- according to the company’s financial statement for the quarter ending June 30, 2022.
The company said that during the quarter, it remained focused on commercial execution by targeting customer base recovery and growth, through both on-the-ground and segmented below-the-line initiatives.
“We invested in driving customer acquisition and retention, as well as increasing the number of days a customer is active on our network. Further, our multi-product strategy called the ‘system of advantage’, which leverages machine learning capabilities, continued to play a pivotal role in differentiating our customer proposition,” the company’s Acting Managing Director’s review Hilda Bujiku said.
The statement said that despite the stiff market competition, its customer base grew by by 1.5% to 15.6 million during quarter II, 2022.
The company’s M-Pesa customer base also recovered to 7.4 million being a 9 per cent quarter-on-quarter growth.
“This improvement was supported by our new service offerings and around 0.4 million customers re-activating their M-Pesa accounts to collect interest payments.
The company’s total expenses during the quarter was 175.1 billion with its direct expenses totaling 81.5 billion mainly driven by increased investment in customer acquisition and retention including devices, commissions and interconnect expenses aimed at expanding our customer reach.