On Monday, South Africa’s Vodacom Group (VODJ.J) announced a 10.8% decline in full-year earnings, attributing it to several factors including startup losses in Ethiopia, increased finance and energy costs, and inflationary pressures.
The company, mainly owned by Britain’s Vodafone (VOD.L), partnered in launching Safaricom Ethiopia in 2022, anticipating growth opportunities in the populous nation. Vodacom holds a direct 5.7% stake in the venture. Despite challenges, CEO Shameel Joosub highlighted progress in Safaricom’s network deployment in Ethiopia.
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Group service revenue surged by 29.1% to 120.9 billion rand ($6.57 billion), buoyed by the acquisition of Vodafone Egypt. Adjusted for comparison, the revenue growth stood at 9.2%, at the upper end of its projected range. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 24.3% to 56.1 billion rand, with Egypt playing a significant role in this growth.
Source: Reuters
