Capitec Connect’s extraordinary growth: 1.2 million customers in two years

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Capitec’s mobile virtual network operator, Capitec Connect, has soared past the one million customer mark, just two years after the proposition was launched.

Capitec Connect, which made its debut in September 2022 and which piggybacks on the network of mobile operator Cell C, saw the number of active Sims jump by 30% year on year to reach 1.2 million.

The bank said it is challenging the “excessive pricing and lack of transparency in the prepaid data and airtime sector” with data, voice and SMS bundles that it said are “simple, affordable and transparent”.

Usage has soared, it said, with 95.1 million voice minutes used in the reporting period to end-August 2024, up from 29.7 million in the same period a year ago. Data usage, meanwhile, increased from 1.4 petabytes to 5.1PB.

“Net transaction and commission income, including VAS (value-added services) and Capitec Connect, was one of the main drivers of growth,” Capitec told investors on Tuesday.

“Net transaction income and commission, excluding VAS, grew by R1.1-billion, while growth in VAS contributed R833-million more to profit before tax. Active Capitec Connect clients grew from 0.9 million to 1.2 million, increasing income from this source. Digital and card payment volumes increased by 24% and now represent 89% of the total transaction volume excluding system-generated transactions (August 2023: 87%).”

Showmax

Strategic initiatives, which include VAS and Capitec Connect, contributed R1.5-billion to group headline earnings, up from R834-million a year ago. VAS net income increased by 73% to R2-billion (August 2023: R1.1-billion).

Meanwhile, on its recent partnership with MultiChoice Group-owned Showmax, which was launched on 13 August, Capitec said that within a month, 50 000 voucher sign-ups had been recorded.