Vodacom ends March with better-than-expected revenue

JOHANNESBURG – Vodacom ended March with a better-than-expected revenue and declared a dividend driven by the solid performance from its international operations, demonstrating resilience in the face of Covid-19.

Shareholders were rewarded with a R7.43billion final dividend.

Group revenue for the period under review jumped 4.8percent to R90.7bn, up from R86.6bn a year earlier, supported by the 5percent growth in service revenue to R73.5bn.

Headline earnings a share jumped 9percent to R9.45 a share, boosted by the special dividend received from Safaricom and the non-recurrence of the once-off black empowerment charge included in the previous year. The group’s investment in Kenya’s Safaricom delivered a 30.4percent boost in profits with growth bolstered by currency factors and the inclusion of the new M-Pesa joint venture.

Vodacom also temporarily suspended its guidance due to Covid-19 uncertainty and consumer spend pressure as a result of the pandemic.