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Vodacom Earnings Rise as Data Sales Drive Africa Market Growth

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(Bloomberg) -- Vodacom Group Ltd. said first-half earnings improved after the wireless carrier with the most South African customers saw accelerated data sales and a pick-up in international markets.

  • Earnings before interest, taxes, depreciation and amortization rose 4.7 percent to 16.5 billion rand ($1.5 billion), while the interim dividend was increased to 3.95 rand a share from 3.90 rand.

Key Insights

  • A 6 percent increase in headline earnings per share excluded the impact of a 16.4 billion-rand empowerment deal agreed to earlier this year. That helped Johannesburg-based Vodacom better comply with government initiatives to increase non-white participation in the economy.
  • The unit of the U.K.’s Vodafone Group Plc experienced tough conditions in its home market, with weak economic growth hurting consumer spending. The carrier has used investment in data to offset the weak environment, helping to boost revenue and customer numbers in its biggest market.
  • Vodacom’s international portfolio more than held its own, helped by the recent acquisition of a stake in Nairobi-based Safaricom Plc from its parent. Services such as money-transfer service M-Pesa have helped drive growth, and the 2.3 million new customers in the period almost matched the South African figure of 2.5 million.

Get More

Read the statement here.

To contact the reporter on this story: Loni Prinsloo in Johannesburg at lprinsloo3@bloomberg.net

To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, John Bowker, Ana Monteiro

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