Vodacom’s Annual Profit Drops 6.4%
Vodacom’s Annual Profit Drops 6.4%. This decrease can be attributed to a combination of load shedding and operational activities as reported by TechCentral.
For the year ending on March 31, the company’s headline earnings per share dropped to R9.48, down from the R10.13 recorded in the previous year. Vodacom Group has been actively investing in its expansion as a pan-African player, aiming to become a prominent financial services firm while strengthening its data offering in South Africa.
Unfortunately, these expansion efforts faced challenges due to the situation in South Africa, its largest market in the region. The country has been grappling with frequent power outages, commonly known as load shedding, lasting up to 10 hours per day.
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These outages have forced telecommunications companies to rely on diesel-powered generators to keep their towers and networks operational, leading to increased operational costs and disruptions.
Despite the decline in profit, Vodacom’s revenue for the year experienced a significant increase of 16% to reach R119 billion. This growth was primarily driven by the acquisition of a 55% stake in Vodafone Egypt and the depreciation of the local currency.
As Vodacom continues to navigate the challenges posed by load shedding and seeks to expand its presence across Africa, the company will likely focus on finding solutions to mitigate the impact of power outages and optimize its operational efficiency.
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