Vodacom shares jump 7% on strength of African subsidiaries
By the AFREEQUE newsroom, based on Business Day (South Africa)
Vodacom shares closed 7.15% higher at 178.15 rand, their biggest one-day gain since March 2020, driven by the performance of its Egyptian and Kenyan subsidiaries. Revenue from the South African operator’s Egyptian business jumped 31.3% and Safaricom’s 27.5% in the first half, according to Business Day.
Shares in Vodacom, the South African telecommunications group listed on the Johannesburg Stock Exchange, rose 7.15% on Tuesday to 178.15 rand, their biggest one-day gain since March 2020 and their highest closing level since September 2017. Investors reacted to the group’s half-year results, according to Business Day.
International operations grew strongly in the first half ended in September, with Vodacom’s EBITDA in Egypt rising 31.3% and Safaricom’s increasing 27.5% in local currency. The international segment, which includes Tanzania, Lesotho, DR Congo and Mozambique, grew 15.9% on a normalised basis.
EBITDA in the South African market rose 10.5% to 17.1 billion rand, with a margin of 37.4%. At group level, reported EBITDA increased 40% to 42.66 billion rand, attributable profit reached 34.4 billion rand from 9.1 billion rand a year earlier, and half-year earnings per share rose 25.7% to 587 cents.
Vodacom said it had declared an interim dividend of 355 cents per share, up 7.6%. Revenue reached 102.5 billion rand, up 25.6%, notably due to the consolidation of Safaricom from the second quarter. The acquisition of the Kenyan operator remains contested in court, however, with the Nairobi Court of Appeal ordering the status quo to be maintained while it considers the appeal.
