Vodacom sees stronger financial results

South Africa’s Vodacom said on Wednesday its full-year earnings rose by as much as 25 percent, lifted by a strong performance in its mobile business and a favourable tax change.

Vodacom, a unit of Britain’s Vodafone, said in a trading update that headline earnings per share for the year to end-March rose by 20 to 25 percent, from 709 cents a year earlier.

Headline EPS, the main measure of profit in South Africa, excludes certain one-time items.

The higher earnings are due to a strong performance in its core business and the recognition of an additional deferred tax asset in Mozambique, it said.

The company said it would release its complete earnings on or around May 20.

Vodacom, the dominant mobile operator in South Africa, is dwarfed elsewhere on the continent by local rival MTN Group.

Shares of Vodacom are down 15 percent this year, underperforming a 3.5 percent decline in Johannesburg’s benchmark Top-40 index.

Source: Moneyweb

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