Vodacom has warned shareholders that it expects headline earnings per share to fall by as much as 20% in the six months to September 2009 against the comparable year-ago period.
Headline earnings have been affected by higher finance charges and losses on the “remeasurement of financial instruments”, the cellular group said in a statement released to the JSE’s Sens news service. Headline earnings were also impacted by the reversal of a deferred taxation asset of approximately R500m due to the reduced profitability of Vodacom’s operation in the Democratic Republic of Congo.
Vodacom also warned shareholders of an expected impairment loss of about R3,2bn, mainly in relation to the Gateway acquisition as a result of “recent adverse changes in the economic environment, increased price competition and the resulting poorer trading trends”. This impairment will lead to a fall in Vodacom’s basic earnings per share of between 95% and 105%.
“The main difference between basic earnings and headline earnings will be the impairment of goodwill in relation to Gateway,” the group said.
Revenue was expected to rise by 10% and earnings before interest, tax, depreciation and amortisation by about 8%.
The cellular group is expected to release its results on 9 November. — Staff reporter, TechCentral
- Image credit: Vodacom
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