South African Vodacom affected by the deployment of the Ethiopian network

The company, majority-owned by Britain’s Vodafone, said overall earnings per share, the main measure of earnings in South Africa, fell to 457 cents in the six months to September 30 from 505 cents a year earlier. .

Vodacom said it has implemented a new simplified dividend policy, which is set at at least 75% of overall Vodacom Group profit, and declared an interim dividend of 340 cents per share.

Kenya’s Safaricom leads a consortium, including Vodacom and Vodafone, which entered the Ethiopian market last month, becoming the first private operator in one of Africa’s biggest telecommunications markets.

It has already launched its network in 16 cities in Ethiopia, with plans to expand its services to 25 cities by April 2023 and reach its first milestone of covering 25% of the population, Vodacom’s chief executive said, Shameel Joosub.

The company also blamed various initiatives it has taken to help customers in financial difficulty for the drop in profits.

“Vodacom has tried to absorb the huge inflationary costs of the dramatic increase in energy costs as much as possible,” Joosub said.

The group’s revenue, however, rose 7.7% to 53.7 billion rand ($3.10 billion), thanks to 3 million additional customers and demand for data and financial services.

($1 = R17.3178)

(Reporting by Nqobile Dludla; ​​Editing by Christopher Cushing and Subhranshu Sahu)

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