South Africa’s Vodacom reports 15,7% jump in H1 earnings, reinstates targets

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SOUTH African mobile operator, Vodacom Group, on Monday reported a 15.7% rise in half-year earnings, boosted by a once-off deferred tax rate adjustment and reinstated medium-term targets.

The firm, which is majority owned by Britain’s Vodafone , said headline earnings per share for the six months ended Sept. 30, rose to 532 cents from 460 cents a year earlier.

In May, Vodacom had postponed issuing medium-term forecasts due to the uncertain economic outlook for its markets as the effects of the coronavirus pandemic continue to unfold.

“We do however expect this outlook to improve into FY22,” the company said, adding that this assumption of economic improvement, together with the relative demand for its services to date, provides the basis for reinstating medium-term targets.

The only slight change to the targets is a mid-single digit group operating profit growth over the next three years compared to a mid-high single digit growth forecast.

Overall group revenue grew by 7.8% to 47.8 billion rand ($3.09 billion), while service revenue rose by 7%, buoyed by strong demand for voice, data and financial services during the coronavirus lockdown. ($1 = 15.4586 rand) –Reuters.com

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