Price Cuts Boost Vodacom's Interim Performance - Frost & Sullivan

Price Cuts Boost Vodacom's Interim Performance - Frost & Sullivan PR Newswire CAPE TOWN, South Africa, Nov. 12, 2012 - Vodacom release interim results today CAPE TOWN, South Africa, Nov. 12, 2012 /PRNewswire/ -- Vodacom has shown increased revenues in its South African operations, despite the market becoming increasingly saturated and witnessing more fierce competition. The company also completed the sale of carrier, Gateway Communications to Asian operator, PCCW, following some below-par performances. The Vodacom Group released interim results for the six months ended 30 September 2012, posting impressive revenue and earnings. Compared to the same period last year, revenue was 6.9% up from R27,752 million in 2011 to R29,675 million in 2012. EBITDA for the period increased by 7.6% to R10,535 million. The performance was driven by continued growth in international operations and data services. Since the turn of the year, Vodacom has been cutting prices, as the price war between the operator and rival, Cell C, has intensified. Despite downward pressure on prices, mobile voice and data revenues rose 7.3% and 20.2%, respectively. "The pressure to cut prices is changing the rules of the game for mobile operators," says Frost & Sullivan's Information & Communication Technologies research analyst, Lehlohonolo Mokenela. "Operators are being forced to become creative with new tariff structures to ensure price reductions don't start cutting into their margins.