Vodacom reports a 10.8% decline in headline earnings for the year ending in March, citing factors such as start-up losses in Ethiopia, higher finance costs, and increased energy costs as contributors to the profit decrease.
- Headline Earnings per Share: Headline earnings per share (HEPS) fell from 948c to 846c compared to the previous year, reflecting the impact on profitability.
- Revenue Growth: Despite the decline in earnings, Vodacom saw a significant growth in revenue, which increased by 26.4% to reach R150.6bn. Net profit also rose by 6.4% to R19.3bn.
- Inflationary Pressures and Exchange Rates: Vodacom mentions that absorbing inflationary pressures and dealing with weaker exchange rates, including the devaluation of the Egyptian pound, contributed to the decline in HEPS.
- Service Revenue and Customer Base: Group service revenue experienced growth of 29.1%, and Vodacom now serves a combined total of 203.1 million customers across the group. The financial services division also saw a revenue increase of 32.2% to R13bn.
- Dividend Declaration: Vodacom declared a final dividend of 285c per share, resulting in a total dividend of 590c per share, representing an 11.9% decrease from the previous year.
- Future Outlook and Growth Strategies: Vodacom aims to expand partnerships across Africa, drive infrastructure sharing for increased connectivity, and expand the reach of its Tech for Good solutions. The company remains committed to investing in technology and network infrastructure to enhance the customer experience.
While facing challenges in some areas, Vodacom’s acquisition in Egypt and a resilient performance in its largest market, South Africa, contributed to the overall revenue growth and demonstrated the company’s commitment to long-term growth and customer satisfaction.