The company said headline earnings per share (HEPS) climbed to 467 cents for the six months ending September 30, up from 353 cents a year earlier. The result includes a one-off payment to former employee Kenneth Makate, concluding a 17-year legal dispute over a call-back service. While the settlement amount was undisclosed, SBG Securities estimated it at around ZAR 500 million (USD 28.9 million).
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Group operating profit rose 25.5% to ZAR 20.2 billion, driven by solid performances in markets outside South Africa, particularly Egypt and Kenya’s Safaricom, in which Vodacom holds a stake. However, operating profit in South Africa fell 11% to ZAR 8.8 billion, reflecting pressure on core margins and the settlement cost.
Group service revenue increased 12.2% to ZAR 65.8 billion, supported by robust growth in Egypt and other regional markets. In South Africa, service revenue grew modestly by 2.2%, lifted by contract and beyond-mobile services, though prepaid revenues continued to face pressure amid tough competition and strained consumer spending.
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“You’ve got a consumer that’s more under pressure, but you’ve also got a lot more competitive competition in the prepaid segment,” said Group CEO Shameel Joosub.
To strengthen growth and customer loyalty, Vodacom is offering larger data packages at discounted rates and more competitive device deals.
