JSE-listed Vodacom on Monday posted a 2.8% rise in headline earnings per share (HEPS) for the year ended March 2014, as the telecommunication giant’s international operations continue to shine and its South African unit recovers.

HEPS increased from 872c in 2013 to 896c during the 12 months of the 2014 financial year, with basic earnings a share increasing 1.8% to 903c during the period under review.

Group earnings before interest, tax, depreciation and amortisation (Ebitda) increased 8.2% to R27.3-billion in the financial year to March 2014, with a margin of 36.1%.

Vodacom reported a 8.3% and 4.7% rise in group revenue and service revenue to R75.7-billion and R62-billion respectively.

“Vodacom again performed well this year with good results from our international operations and South Africa returning to growth,” said Vodacom group CEO Shameel Joosub, adding that the year saw seven-million customers join Vodacom, which brought the group’s total active customer base to 57.5-million.

In South Africa, which gained 8% in active customers, increasing to 31.5-million, Vodacom posted Ebitda growth of 3% to R23-billion with an Ebitda margin of 37.4%.

The company’s service revenue grew 0.3% to R48.3-billion, an improvement on last year's 0.3% contraction. However, excluding the impact of lower mobile termination rates, which resulted in a 21.7% decline in interconnect revenue, service revenue increased 3%.

Vodacom attributed the return to service revenue growth to higher data revenue growth of 23.6%, which offset a 3.5% decline in voice revenue.

The South African operation’s revenue increased 5.5% to R61.8-billion, driven by a 28.6% growth in equipment revenue, which now accounted for 20.3% of total revenue.

Meanwhile, Vodacom’s international operations reported a 23.4% jump in service revenue to R13.8-billion, supported by a 21.8% rise in active customers to 26-million.

Data revenue more than doubled and the number of active data customers increased 86.4% to 7.7-million.

International Ebidta increased 55.4% to R4.2-billion, with the Ebitda margin expanding six percentage points to 29.6%.
Vodacom declared a final dividend of 825c for the year under review.