Vodacom expects to report higher annual earnings, with HEPS expected to rise as much as a quarter.
The group said in a trading statement late on Monday that HEPS for the year to end-March is expected in a range of 1,028c-1,071c, which is 20%-25% higher than a year ago.
EPS for the year will rise by a similar margin to between 1,031c and 1,074c, the group said, while giving no specific reason for the expected increase.
“It is anticipated the results will be consistent with Vodacom’s Vision 2030 double-digit ebitda [earnings before interest, tax, depreciation and amortisation] growth ambition,” it said.
It will release its results on May 11.
In February, the group reported a strong third-quarter performance, boosted by sustained growth in Egypt and its international business.
Group revenue grew 11% to R43.9bn in the quarter to end-December and 11.7% on a normalised basis, which presents performance on a comparable basis.
Group service revenue grew 12.7%, with normalised growth of 13.6%. Of the total, Egypt grew service revenue by 39% to R9.5bn, with Egypt’s financial services revenue up 59.4%.
Group financial services remain a key growth engine for Vodacom, and revenue increased by 24.7% to R4.5bn in the December quarter, while $500.7bn (R8.2-trillion) in transactions were conducted through the group’s mobile money platforms, including Safaricom, over the past 12 months.
Including Safaricom, the group passed the 100-million financial services customers mark during the quarter.
The group recently acquired an additional 20% stake in Safaricom for $2.1bn. The acquisition reinforced its commitment to the high-growth East African markets of Kenya and Ethiopia.
In November last year, its acquisition of a strategic stake in South African fibre business Maziv received the Independent Communications Authority of South Africa’s final approval, unlocking the opportunity to accelerate fibre deployment and expand access to high-quality connectivity, particularly in historically underserved communities, it said at the time.
Last month Vodacom invested $28m to upgrade technology for its M-Pesa platform in Tanzania, a move that better positions the fintech unit for growth and scale.
This comes after Vodacom took control of M-Pesa last year through its buyout of East Africa’s largest mobile operator, Safaricom, in a R36bn deal that strengthened its place as a major player on the African continent.
M-Pesa, the continent’s best-known mobile money business, had previously been a 50-50 joint venture between Safaricom and Vodacom.
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