Vodacom interim profit hit by Ethiopia start-up losses

Published: 2023-11-13 07:28 +02:00 by Nqobile Dludla tag: Telecoms

Vodacom Group reported a 4.2% decline in half-year earnings, impacted by start-up losses in Ethiopia and higher interest rates.

Vodacom Group’s head office in Midrand, Johannesburg

Vodacom Group reported a 4.2% decline in half-year earnings on Monday, hit by the cost of starting operations in Ethiopia and higher interest rates.

The company, which is majority owned by the UK’s Vodafone Group, co-launched Safaricom Ethiopia last year, betting that the populous nation will power growth after about five years of investment.

Group CEO Shameel Joosub said Safaricom Ethiopia has already reached 4.1 million customers and more recently it launched its mobile financial services business M-Pesa there.

Headline earnings per share, a profit measure, fell to R4.38 in the six months ended 30 September, from R4.57 a year earlier.

Read: Vodacom consumer fine has far-reaching implications

Group service revenue grew 42.2% to R59.3-billion, thanks to the acquisition of Vodafone Egypt and rand depreciation against its basket of international currencies.

Excluding the contribution of Vodafone Egypt, group service revenue growth was 7.9% or 4.1% on a normalised basis, supported by a resilient performance in South Africa, the operator said. — (c) 2023 Reuters

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