African mobile operator Vodacom reported revenue for the fiscal year to 31 March up 4.5 percent to ZAR 69.62 billion. Excluding the sale of Gateway Carrier Services and foreign currency impact, revenue was up 5.3 percent. Service revenue rose 1.9 percent to ZAR 59.03 billion, as a 0.4 percent decline in South Africa was offset by 11.0 percent growth at the other operations. The Vodafone subsidiary finished the year with 51.7 million customers, and the number of data customers rose 22.5 percent to 18.5 million. Data revenues increased 22.2 percent to ZAR 10 billion, good for 16.8 percent of service revenues.
EBITDA increased 10.9 percent to ZAR 25.25 billion, and the margin expanded 2.1 ppts to 36.1 percent thanks to improvement at the international operations and cost cuts in South Africa. Headline earnings per share were up 23.0 percent to ZAR 8.72, as a result of strong operating profit growth and lower taxes. Capital expenditure rose 9.2 percent to ZAR 9.46 billion, and operating free cash flow rose 7.2 percent to ZAR 18.16 billion. Vodacom will pay a final dividend of ZAR 4.30; total dividends for the year of ZAR 7.85 are up 10.6 percent.
Vodacom said it expects the South Africa market to remain difficult due to tough competition, inflation and slower economic growth, but it will continue with its focus on providing the best customer experience while keeping costs flat. International markets should continue to grow due to economic growth and low penetration of voice and data services.
