Vodacom Group, the UK-owned South African telecommunications giant, today unveiled a substantial increase in its first-half revenue, attributing much of the growth to its acquisition of Vodafone (NASDAQ:VOD) Egypt. This strategic move has significantly bolstered the company's service revenue, which reached ZAR59.35 billion.
The incorporation of Vodafone Egypt into Vodacom's portfolio has been transformative, contributing to a 36% jump in overall earnings, which soared to ZAR72.8 billion ($3.89 billion). This acquisition has proven to be a cornerstone in Vodacom's expansion strategy, reflecting the company's ability to integrate new assets successfully and leverage them for financial growth.
In addition to the revenue uptick, Vodacom reported a 24% increase in net profit, totaling ZAR9.97 billion. The company also experienced a robust rise in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which climbed by 35% to reach ZAR27.29 billion. The EBITDA margin stood at an impressive 37.5%, indicating strong operational efficiency and profitability.
Despite these positive financial indicators, Vodacom announced a reduction in its interim dividend, which now stands at 305 South African rand cents per share. This represents a decrease from the previous dividend of 340 cents per share. The decision to lower the dividend may reflect the company's broader financial strategy or investment plans following its recent acquisition activities.
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