By Elena Vardon

Vodacom Group on Monday raised its medium-term growth targets to account for the contribution of its Egypt acquisition as it reported a rise in revenue driven by services in fiscal 2023.

The South Africa-based telecommunications company--which is majority owned by the U.K.'s Vodafone Group--, made a net profit for the year ended March 31 of 18.11 billion South African rand ($936.3 million) compared with ZAR17.73 billion for the comparable period a year earlier.

Revenue rose to ZAR119.17 billion from ZAR102.74 billion on the positive impact of its purchase of a 55% stake in Vodafone Egypt and the rand depreciation, it said. Service revenue was ZAR93.65 billion compared with ZAR79.94 billion.

Earnings before interest, taxes, depreciation and amortization grew 13.2% to ZAR45.14 billion, or 3.6% on a normalized basis, it said.

Vodacom raised its medium-term targets following its Egypt acquisition and now sees mid-to-high single digit growth group service revenue growth on average over the next three years, from mid-single digit previously. It targets for group Ebitda to see high-single digit growth, from mid-to-high-single digit growth, and kept its aim for group capital expenditure to be between 13.0% and 14.5% of group revenue unchanged.

The board declared a final dividend of 330 South African cents a share, taking the total payout for the year to 670 cents in line with its new policy and compared with 850 cents for fiscal 2022.


Write to Elena Vardon at elena.vardon@wsj.com


(END) Dow Jones Newswires

05-15-23 0151ET