Report
Sarah Shabayek
EUR 29.66 For Business Accounts Only

Vodacom FY 17A results: Largely in line with estimates – FX headwinds conceal growth in SA. Acquisition of Safcom – neutral to both.


  • FY 17A revenues slightly miss our estimates and the street (-2%) on i) FX devaluation in subsidiaries, and ii) decline in handset sales.
  • EBITDA margin of 38.4% in FY 17A is aligned with market expectations as weak international performance was offset by solid domestic results.
  • Overall decent set of numbers when adjusting for FX impact. Maintain Hold on expensive valuation multiples (FY 18e EV/EBITDA of 6.5x, at a c.20% premium to sector average).


Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Sarah Shabayek

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