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Investing.com -- South Africa’s Vodacom Group, which is majority-owned by the UK’s Vodafone Group (LON:VOD), on Monday raised its medium-term targets after reporting an increase in net profit and revenue for its fiscal year.
The telecommunications company has upgraded its medium-term targets for group service revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) from high single-digit to double-digit growth.
For the fiscal year ending March 31, Vodacom’s net profit rose to 16.60 billion South African rand, equivalent to $920.1 million. This is an increase from the previous year’s 16.29 billion rand.
However, EBITDA for the same period fell 1.1% on a reported basis to 55.51 billion rand, with the corresponding margin decreasing to 36.5% from 37.3%.
Revenue for the year increased to 152.23 billion rand from 150.59 billion rand, primarily due to customer growth. The reported revenue slightly missed the market consensus of 152.48 billion rand, which was based on data from six analysts taken from Factset.
Service revenue, a key metric in the telecom sector, declined 0.1 % on a reported basis to 120.73 billion rand. However, the company experienced a 2.3% service revenue growth in South Africa.
Vodacom’s board declared a full-year dividend of 620 South African cents, which is a 5.1% increase from 590 cents a year earlier.
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