Vodacom Group profits dip

Vodacom Group profits dip

Vodacom reported a dip in profits due to higher energy costs and forex rates which have also affected other operators on the African continent.

Net income for Vodacom decreased 2.8% to ZAR16.3 billion(US$887 million) although revenue was up by 26% to ZAR150.6 billion (US$8.2 billion).

Start-up costs for Safaricom Ethiopia, which Vodacom has a stake in, also trimmed earnings. Higher energy bills and weak exchange rates including in Egypt were blamed for a 10.8% decline in headline results.

Vodacom Group CEO Shameel Joosub said the group will continue to diversify its footprint and product mix to deliver returns over the medium term, reported Bloomberg.

“We will also seek to expand our partnerships across Africa to power Vodacom’s growth, drive infrastructure sharing to increase rural and fibre connectivity,” he said.

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