Vodacom Group said on Thursday it is establishing a separate legal entity for its South African tower business, after the telecoms operator reported a 5.2% rise in first- quarter revenue, helped by growth in its domestic operations.
South African telecoms firms have either carved out towers businesses or sold them to tower companies, a move also seen globally, as a way to monetise part of the business and keep a chunk for future gains or use the proceeds to fund fast growing services like fintech.
The tower company will be 100% owned by Vodacom Group and intends to announce the managing director of the business in due course, Vodacom Group Chief Executive Officer Shameel Joosub said in a statement.
“During the past quarter we made good progress on the optimisation of our assets, which in the medium term will also positively contribute to bridging the digital divide.”
Vodacom, majority-owned by Britain’s Vodafone, said group revenue for the quarter ended on June 30 rose to R26.1 billion ($1.53 billion) from R24.8 billion in the same quarter last year.