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Top 2 Most Valuable Telcos in South Africa: Brand Finance

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Vusi Melane
Vusi Melane
Staff Writer

MTN remains South Africa’s most valuable brand, notwithstanding an 8% decline in its brand value year-on-year, now standing at just under R70 billion. This is information that comes after the latest Stats from Brand Finance. Brand Finance is the world’s leading brand valuation consultancy. They have helped thousands of companies understand the financial value of their brands and use that information to drive strategic decision-making.

Credible Valuation

Recognized as the foremost brand valuation firm, they boast a comprehensive database of metrics widely utilized by financial institutions, non-governmental agencies, and academics. Pioneering in their field, they hold the distinction of being the first company accredited with both ISO 10668: Brand Valuation and ISO 20671: Their team sets the highest standard for expertise and rigor in conducting brand valuations.

According to their latest report, the telecommunications giant has expanded its operations beyond South Africa, notably establishing a significant presence in Nigeria, its largest market in terms of both user base and revenue.

Vodacom gradually narrows the gap

This year, 2024, Vodacom, rivaling MTN, secured the second position by augmenting its brand value by 10% to approximately R43 billion, thereby narrowing the gap between the top two contenders.

Despite its autonomous operation and listing on the JSE, Vodacom’s affiliation with Vodafone, as revealed by Brand Finance’s data, reinforces its brand equity, thereby fostering increased recognition and trust.

Chairman of Brand Finance, Jeremy Sampson says “Amid the myriad of challenges that South African businesses are facing, our research highlights that now, more than ever, brand consistency is crucial in driving growth.”

The recent Tech Industry developments shows that MTN continues to show some firm growth through exploring untapped markets in Africa through its explosive App Ayoba:

Despite the setbacks of its “Please Call Me” saga, Vodacom continues to excel in brand maintenance value. They have significantly narrowed the gap between themselves and industry leaders MTN. During the six months spanning April to September 2023, Vodacom generated service revenue of R59.35 billion, marking a notable 42.2% surge from the R41.73 billion recorded during the same period in 2022. This substantial increase can be attributed primarily to an additional revenue of R14.31 billion stemming from its acquisition of Vodafone Egypt, coupled with a 12% depreciation of the rand against Vodacom’s basket of international currencies. Despite the relatively lower growth potential in South Africa compared to many other African markets, Vodacom witnessed a more modest 4% increase in service revenue, rising from R29.49 billion to R30.67 billion.


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