The report, which contained the financial results for year end March 2015, shows a 36% increase in Vodacom’s insurance business, which offers life, funeral, contract and other insurance cover. This means that insurance-related revenue grew to R441.4 million, from R324.6 million in 2014.
In contrast, overall South African service revenue declined 2.7% to R47 billion.
This increase has been led by device insurance. Vodacom has been selling insurance since 2012, when they were granted a long-term insurance licence by the financial Services Board (FSB).
The group offers a range of mobile cover options which start at R35 per month for phones of a value up to R1000, and reaching up to R245 per month for high-end devices that extend beyond R15000.
Vodacom’s network now has 11.6 million active smart data devices, a year-on-year increase of 29.7%. Of these 9.3 million are smartphones, 1.1 million are tablets, and 1.2 million are modems.
Vodacom’s insurance division forms part of their ‘new services’ which includes financial services, M2M, M-Pesa, and content. These are seen as key growth pillars within the company.
The report also showed that Vodacom is investing significantly in its mobile network across South Africa.
Capital expenditure grew 26.1% to R8.6 billion year-on-year which can be seen in the growth in the rollout of network sites.
They have also completed a six year project to upgrade the radio access network with 4G-ready equipment.
“This was as a result of our accelerated capex programme which focused on coverage, capacity, and network quality,” said Vodacom.