Vodacom: H1 17A results review
- ​Good operational performance – but HEPS disappoints slightly.
- Top-line growth in line with our estimates of 4.1%y/y but a miss on HEPS and DPS
- SA EBITDA margin benefited from channel efficiencies, lower commission, improved stock management and a one-off benefit from bad debt recoveries.
- International EBITDA margin declined 2.2ppts on weaker top line.
- Positive to see that Vodacom has managed to sustain decent service revenue growth in SA of 5.6%y/y, ahead of our estimate of 5.0%y/y.
- International operations negatively impacted by customer registration requirements.
- 25% of the Tanzanian business to be listed by calendar year end.
- Capex deployment remains on track – capex intensity of 14.2% across the group.
Vodacom is an investment holding company. Through its subsidiaries, Co. is engaged in the provision of a range of communications products and services including but not limited to voice, messaging, converged services, broadband and data connectivity. Co.'s segments comprised of: Corporate, which include the holding companies of Co. which do not relate to specific operating segment; South Africa, which include information relating to the South African-based cellular network, service provider and other business segments; and International, which include information relating to the non-South African-based cellular networks in Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo.
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