Vodacom Group looks set to please its shareholders with a robust set of financial results for the six months ended 30 September 2012, despite increasing downward pressure on tariffs in its largest market, SA.
The telecommunications group expects headline earnings per share to be between 20% and 25% higher than the 324c/share reported in the prior year’s six-month period. Basic earnings per share are expected to be between 30% and 40% higher than the 301c/share of the prior period.
Basic earnings per share in the previous year were affected by impairment charges of R318m relating to Gateway Carrier Services.
Vodacom acquired Gateway in December 2008 for more than US$700m as part of its African expansion plans, but disposed of it at the end of August this year. It says the profit from the sale accounts for the favourable impact on basic earnings per share for the period.
Nevertheless, Vodacom has also turned in a strong underlying core operating performance, with investors pushing the share price up by more than 1,5% in early morning trading on Monday in the wake of the trading statement.
The share has gained 18,4% in the past year; rival MTN Group has added 16,8%. — (c) 2012 NewsCentral Media