South African telecoms operator Vodacom Group reported a sharp rise in annual profit on Monday, buoyed by strong growth across its African markets despite weaker earnings in its domestic business.
The company, majority-owned by Vodafone, said headline earnings per share (HEPS) rose 22.9 percent to 10.53 rand in the financial year ended March 31, up from 8.57 rand a year earlier.
Vodacom said earnings before interest, tax, depreciation and amortisation (EBITDA) increased 12.8 percent to 62.6 billion rand (US$3.81 billion), helped by strong performances from operations outside South Africa.
Chief executive Shameel Joosub said Egypt was a key contributor to the growth, with rand-based EBITDA from the North African market climbing 38.5 percent.
Egypt’s performance was supported by strong revenue growth and tighter cost controls, the company said.
More Read
Vodacom’s expansion across the continent has increasingly helped cushion the group against pressure in its home market, where competition and regulatory costs have weighed on profitability.
In South Africa, EBITDA declined 1.7 percent during the year after the company booked a one-off payment to former employee Kenneth Makate to settle a long-running legal dispute over a call-back service invention.
The dispute, which lasted 17 years, centred on compensation claims linked to the “Please Call Me” service, one of the country’s most widely used mobile messaging products.
More Read
Vodacom said its South African business returned to EBITDA growth in the second half of the financial year after the impact of the settlement eased.
Across the group, service revenue rose 10.6 percent to 133.6 billion rand, driven by solid performances in Egypt, Tanzania, the Democratic Republic of the Congo and Lesotho, while operations in Mozambique and South Africa remained resilient.
The company has expanded aggressively in digital financial services, data offerings and broadband connectivity across its African footprint as telecom operators seek new revenue streams beyond traditional voice services.
Vodacom declared a final dividend of 405 cents per share, reflecting confidence in its cash generation and long-term growth prospects.
The results come as telecom companies across Africa continue to benefit from rising smartphone penetration and demand for digital financial services, although currency volatility and inflation remain challenges in several markets.
Investors are also watching how regional operators adapt to intensifying competition and growing investment needs in network infrastructure and next-generation technologies.
More Read
Vodacom shares were little changed in early trade following the release of the results.
