Telecommunications group Vodacom’s earnings a share for the year ended March 31, 2013, were between 25% and 30% higher than the earnings a share of 694c in the previous financial year.
Headline earnings a share for the year were between 20% and 25% higher than the 709c a share in the 2012 financial year.
Vodacom noted in a trading update on Wednesday that its earnings a share for the 2012 financial year had been negatively affected by R199-million in impairment charges related to Gateway Carrier Services.
The group had sold the subsidiary company for a profit of R223-million in August 2012, which had a favourable impact on its earnings a share for the 2013 financial year.
Further, the group stated that a strong underlying core operating performance and the replacement of secondary tax on companies (STC) with dividend withholding tax had also contributed to the higher earnings for the year under review.
The tax expense in the prior year included an STC charge of R806-million.
The tax charge in the 2013 financial year was also favourably impacted on by the recognition of an additional deferred tax asset in Mozambique, compared with the net derecognition of deferred tax assets in the prior year.
Vodacom’s results for the year would be released on May 20.