Johannesburg – Vodacom Group, South Africa’s second biggest telecoms operator, upgraded its medium-term operating growth target to mid-to-high-single digit on Tuesday, after reporting a 3.7% jump in full-year earnings.
The operator said it upgraded its medium-term operating profit growth target from mid-single digit on improved growth prospects for its international business and Kenya’s Safaricom, which is part owned by Vodacom and Britain’s Vodafone Group.
Headline earnings per share (HEPS), the main profit measure in the country, rose to 980 cents in the 12 months ended March 31 from 945 cents a year earlier.
Vodacom declared a final dividend of 410 cents per share, up 1.2%.
Group revenue rose by 8.3% to R98.3 billion, supported by service revenue growth of 5.8%.
Service revenue growth was “underpinned by the recovery in our international portfolio in the second half of the year and strong growth from our prepaid and enterprise segments, financial services and other new services in South Africa”, said Vodacom.
In South Africa, service revenue grew by 7% on the back of increased data usage as people worked and had school from home, a summer rewards campaign and demand for financial services.
These were a great help in offsetting numerous initiatives such as a R3 billion service revenue impact of lowering data pricing in the country.
