Vodacom to Pay Higher Dividend Despite One-Off Hit to Earnings
By Najat Kantouar
Vodacom set out a higher interim dividend, despite earnings for the first six months of its fiscal year coming in lower than previously guided.
The South Africa-based telecommunications company, which is majority owned by the U.K.'s Vodafone Group, said it would pay shareholders an interim dividend of 330 South African cents a share (19 U.S. cents), up 16% from 285 cents a share a year earlier.
The return "is consistent with the group's dividend policy of paying at least 75% of headline earnings," Vodacom said.
The higher payout comes despite Vodacom booking lower headline earnings per share than previously guided. Headline EPS for the six months through September were 4.67 rand, up 32% on year but below a previously guided range of between 4.94 and 5.12 rand. Vodacom warned last week that EPS would be less than previously expected as a result of a one-off cost.
Vodacom's net profit for the first half rose to 9.11 billion rand from 6.84 billion rand over the same period a year earlier, while earnings before interest, taxes, depreciation, and amortization increased to 30.46 billion rand from 26.56 billion rand. That was slightly above analysts' expectations for Ebitda of 30.3 billion rand, according to a poll compiled by Visible Alpha.
"We're off to an ideal start in a half-year period characterized by a more stable macroeconomic and currency backdrop," Chief Executive Shameel Joosub said.
Revenue rose to 81.585 billion rand from 73.54 billion rand a year earlier, supported by robust growth in Congo, Egypt, Lesotho and Tanzania, Vodacom said.
Meanwhile, service revenue--a key metric for the telecommunications industry--grew 12.2% to 65.81 billion rand.
Vodacom reiterated its medium-term targets, which include double-digit growth in service revenue. The company continues to expect double-digit percentage growth in Ebitda and service revenue, as well as capital expenditure between 13.0% and 14.5% of group revenue.
Write to Najat Kantouar at najat.kantouar@wsj.com
(END) Dow Jones Newswires
November 10, 2025 06:45 ET (11:45 GMT)
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