Fall in data prices, BEE deal cut into Vodacom's net profit
FIN24 / 13 MAY 2019 - 10.38 / STAFF REPORTER
Vodacom announced on Monday morning that its revenue and operating costs increased, but net profit fell marginally, in the year ended March 31, 2019.
Operating profit rose 1.1% to R24.51bn, while net profit declined by 0.8% to R15.44bn.
Headline earning per share dropped 6.6% from 923 cents to 862 cents.
Vodacom CEO Shameel Joosub. (Pic: Gallo Images)
In a statement Vodacom's Group CEO Shameel Joosub said that a reduction in out-of-bundle tariffs had contributed to a 37% decline in effective data prices since the end of March 2018.
This, together with costs associated with the group's new R16.4bn BEE ownership deal, dampened growth in Vodacom’s operating profit.
The mobile operator added 6 million customers in the year ended March 31. It now has a total of 110 million customers across the group.
Joosub said the group saw excellent results in its international operations, including an increase in service revenue of 15.6% and 25.8% growth in data revenue.
The group announced a dividend of R7.95 per share, down 2.5% from the previous year.
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