Vodacom Group has recently announced an interim dividend of 415cps, reaching up to 9.2%.
This got backed up by earnings from its integrated companies and the Safaricom dividend receipt.
From the result released this week, Vodacom Group confirmed its revenues had reached 7.8% to R47.8 billion, reinforced by revenue growth of 7.0%.
The per-share earnings is up to 15.6% while the headline earnings per share amounted to 15.7%.
This was improved by a one-off tax rate adjustment that got deferred at R0.7 billion.
Free cash flow reached 92.1% to R5.3 billion which reflected a cash growth generated from operations and the dividend receipt from Safaricom.
Speaking on these interim results, Shameel Joosub, CEO at Vodacom said:
“Our strategic investment in Safaricom delivered a 52.2% boost in our operating profit, buoyed by currency factors and a one-off deferred tax rate adjustment of R0.8 billion.
Safaricom’s local currency results reflect the impact of depressed economic activity and lower M-Pesa P2P monetisation, related to the COVID-19 pandemic.
Safaricom accelerated capital expenditure by 25.5%, supporting platform growth and a notable financial improvement into the second quarter compared with the first quarter”
Vodacom group operates in Kenya, Mozambique, Tanzania, Lesotho and the DRC, with an addition of 4.1 million customers, to serve a total 120 million customers with Safaricom’s inclusive.
Joosub explains that the aggregate financial service customers which also include Safaricom were up to 13.9% from 6.7 million to 54.8 million.
According to him, South Africa’s revenue service saw a growth rate of 7.1%, a factor that got driven by an acceleration in its customer service revenue in 2020 second quarter.
“Considering the magnitude of challenges arising from the pandemic in the past six months, it is particularly pleasing that we recorded a solid financial performance at Group level, where service revenue increased 7.0%.
This got underpinned by strong growth from our Consumer and Enterprise businesses in South Africa, where service revenue rose 7.1% despite reductions of up to 40% in monthly data bundles which came into effect on 1 April 2020,” Joosub concluded.
Featured Image: Shameel Joosub, CEO at Vodacom
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