The only telecommunication company operating in Tanzania listed on the Dar es Salaam Stock Exchange (DSE) reported Sh507.991 billion in revenues during the period, up from Sh484.981 billion that was registered during a similar period last year.
While M-Pesa remains the major source of money amid a sustained decline in income from mobile voice, it is actually data that has emerged as the fastest growing revenue-generating stream for Vodacom during the period under review.
Mobile data revenue increased 29.9 percent to Sh125.9 billion.
This puts data as the third highest source of revenue for Vodacom Tanzania, contributing 24.8 percent of service revenue, the company’s interim condensed consolidated financial results for the period ended 30 September 2022, shows. At Sh169.6 billion and Sh143.8 billion, M-Pesa and mobile voice remain the first and second highest sources revenue for Vodacom Tanzania respectively.
This, according to the financial results, was due to 28.3 percent improvement in the average amount that subscribers spent on data (Average Revenue Per User – ARPU) during the period.
“….this reflects strong demand for data services as a result of our continued investment into the network and acceleration of smartphone adoption,” the company says in its financial statement, adding that during the period, monthly average usage per customer grew 28.6 percent to 2.0 gigabyte.
Similarly, smartphone users on Vodacom’s network grew 18.2 percent to 4.7 million representing 58.8 percent penetration to data customer base, thanks primarily to the firm’s commercial initiatives in driving smartphone adoption and conversion, including investment in device subsidy and expanding our share of open market device sales.
While M-Pesa is also seen to be on the recovery, the company says, the rise in revenue was also partly supported by another double-digit growth in revenue from fixed services.
“The decision by the government to review levies on mobile money transfer and withdrawal transactions introduced on 15 July 2021, is a welcome move. The reduction is particularly relevant to our peer-to-peer and cash-out transactions which posted a modest recovery in the second quarter and our ability to expand financial inclusion to more Tanzanians,” Vodacom Tanzania’s managing director, Mr Philip Besiimire, said.
M-Pesa customers recovered to 7.7 million, up 19.5 percent.
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Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
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