Vodacom has reported a 9% decline in half-yearly net profit compared to last year, from R8.9 billion to R8.1 billion.<\/p>\n
The mobile operator released its interim results for the period 1 April to 30 September 2022 on Monday, reporting revenue increases but a decrease in profits.<\/p>\n
Operating profits were also down 5.6% from R14.1 billion to R13.3 billion.<\/p>\n
Vodacom cited ongoing financial market volatility and weaker prospects for the global economy.<\/p>\n
It noted that the war in Ukraine, which followed soon after the Covid\u201319 pandemic, continues to result in increased inflationary pressures and higher living costs worldwide.<\/p>\n
Specifically, it noted that headline earnings were impacted by start-up losses in Ethiopia and higher finance costs as interest rates normalised to pre-Covid levels.<\/p>\n
Vodacom said its earnings were also impacted by one-off factors and higher energy and network costs.<\/p>\n
Group revenue was up 7.7% year-on-year to R53.7 billion, supported by rand depreciation against Vodacom\u2019s basket of international currencies.<\/p>\n
Group service revenue increased 7.2% to R41.7 billion over the period.<\/p>\n
Eskom\u2019s rotational power cuts were among the energy costs impacting Vodacom\u2019s bottom line.<\/p>\n
\u201cIn South Africa, we invested R5.8 billion in our network \u2014 the most in a six-month period \u2014 to further enhance the customer experience at a time when the country experienced record levels of power outages,\u201d the company stated.<\/p>\n
It reiterated that it had invested R2 billion just in batteries in the past two years.<\/p>\n
\u201cAt the same time, we continue to work closely with Eskom to find a renewable energy solution for the benefit of our planet and customers,\u201d Vodacom said.<\/p>\n
Vodacom announced in September that it was launching a pilot programme with Eskom<\/strong><\/a> to source all its electricity from renewable independent power producers, and contribute this to the national grid.<\/p>\n Vodacom said it invested over R50 billion in its network in the past five years.<\/p>\n This has driven growth in new services such as financial and digital services, fixed broadband, and the Internet of Things.<\/p>\n \u201cIn addition to increased demand for personalised bundles and strong equipment sales, these factors contributed to a 4.9% rise in revenue in our largest market,\u201d Vodacom said.<\/p>\n \u201cUnderpinned by an almost 20% increase in insurance policies, revenue generated from financial services improved 8.1% to R1.4 billion.\u201d<\/p>\n After less than a year, Vodacom\u2019s \u201csuper app\u201d, VodaPay, has amassed 2.2 million registered users through 3.5 million downloads.<\/p>\n It has near-term plans to add cash-in and cash-out capabilities, and scale its affordable consumer microloans.<\/p>\n This positions VodaPay well to expand its offerings and drive deeper penetration of financial services, Vodacom said.<\/p>\n Vodacom declared a gross interim dividend of R3.40 per ordinary share, payable on Monday, 5 December 2022, to shareholders recorded in the register at the close of business on Friday, 2 December 2022.<\/p>\n Vodacom\u2019s half-yearly results show a 9% decrease in net profit.<\/p>\n","protected":false},"author":15,"featured_media":444114,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,3],"tags":[181,35,51867,76848,41,69287],"class_list":["post-468813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-telecoms","tag-eskom","tag-headline","tag-loadshedding","tag-russia-ukraine-conflict","tag-vodacom","tag-vodapay"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/468813"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=468813"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/468813\/revisions"}],"predecessor-version":[{"id":468815,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/468813\/revisions\/468815"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/444114"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=468813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=468813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=468813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nNow read: If you invested R100 in Vodacom and MTN in 2009, here is how much you would have today<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"