Vodacom (VOD) 1H24 – Results Snapshot

Diluted HEPS of 429.0 cps (1H23: 443.0 cps).
Revenue growth of +35.5% y-y (1H23: +7.7%).
Contribution margin down 50 bps to 61.4% (1H23: 61.9%).
Operating margin down to 23.4% (1H23: 24.7%).
Expense to sales up to 78.5% (1H23: 78.0%).
Dividend of 305 cps (1H23: 340 cps).
Higher interest rates and inflation as well as currency volatility across markets impacted Group earnings.
Service revenue, including Vodafone Egypt, increased 42.2% y-y to R59.4bn (1H23: R41.7bn). Excluding Vodafone Egypt, Service revenue is up 7.9% y-y.
The decrease in earnings is also largely attributable to start-up losses in Ethiopia and a deferred tax asset recognised in Tanzania in the prior period.
Operating free cash flow up 49.1% y-y to R7.2bn.