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Vodafone Egypt acquisition bolsters Vodacom’s Africa ambitions

By , ITWeb
Africa , South Africa , 01 Feb 2023

Deal has lifted company’s performance in Q3 FY 2023.

Vodacom Group CEO Shameel Joosub.
Vodacom Group CEO Shameel Joosub.

Vodacom said its acquisition of Vodafone Egypt has helped lift the Group's performance in Q3 FY 2023, and it expects the latest addition to play a transformative role going forward.

ITWeb reported on Vodacom Group’s financial performance for this period, which included revenue from the deal.

As ITWeb explained, Vodacom Group took control of Vodafone Egypt in a R43.6-billion deal in November 2022.

Vodafone Egypt holds a 43% revenue market share, and has 43 million consumer and enterprise customers.

“The transaction was settled through the issuance of 241 976 243 new group shares and €577 million (equating to R10.8 billion) cash. This was the largest transaction in Vodacom Group’s history, as the telco set in motion its plans to diversify and accelerate growth,” noted ITWeb.

Vodacom Group confirms a positive impact on group revenue, which increased 14.8% to R30.7-billion in the quarter.

Shameel Joosub, Vodacom Group CEO, is quoted: “Vodafone Egypt was consolidated from 8 December 2022, contributed over R1.8 billion to group service revenue and was a key factor, alongside currency gains and operating model resilience, in the 16.1% improvement in our service revenue, despite ongoing financial market volatility and weaker prospects for the global economy.

“The 4.7% increase in normalised group revenue – which strips out currency fluctuations and the impact of Vodafone Egypt’s acquisition – underscores the ongoing resilience of the group’s portfolio at a time when economic uncertainty prevails in the face of the war in Ukraine and the supply chain impacts of the COVID-19 pandemic.

“In addition to delivering value to shareholders by ensuring the smooth integration of Vodafone Egypt into the Vodacom Group, we remain firmly focused on our purpose of connecting people for a better future and, in particular, assisting customers impacted by cost of living constraints.”

Vodacom’s international service revenue is reported to have increased sharply by 18%, fuelled by data revenue growth and a weaker rand.

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