Vodacom CEO Shameel Joosub
Photo by: Creamer Media
JSE-listed telecommunications giant Vodacom achieved double-digit growth in net profit for the financial year ended March 31, boosted by its acquisition of Safaricom, as well as the profit from the sale of Helios Towers Tanzania.
This comes as Vodacom surpasses the 103-million customer mark after adding more than 8.4-million subscribers onto the Vodacom and Safaricom networks during the year under review.
“This has been an extraordinary year for Vodacom,” said CEO Shameel Joosub.
Vodacom’s net profit increased by 18.6% to R15.5-billion, while headline earnings a share remained constant at 923c, impacted by shares issued to acquire the strategic 34.94% stake in Safaricom.
Group earnings before interest and taxes increased by 4.4% to R23.1-billion.
The group’s revenue grew by 6.3% to R86.4-billion and service revenue by 3.4% to R70.6-billion.
Seven-million customers were added to Vodacom’s network – 4.5-million in South Africa and 2.5-million in the international operations.
Safaricom added another 1.4-million customers during the year review.
Safaricom contributed R1.5-billion profit for the eight months since acquisition, after deducting the amortisation of fair valued assets and before minority interest.
Vodacom invested R11.6-billion during the year to expand coverage and improve quality in the networks. Some R8.9-billion of this investment was in South Africa.
The company declared a final dividend a share of 425c.