Shares in Vodacom climbed as much as 5.53% or R5.80 to R110.70 in morning trade on the JSE on Wednesday (24 April), after the group said it expected to lift its full year earnings by as much as 25%.
The group’s performance appeared to lift rival operators MTN, and Telkom, gaining R3.20 or 2% to R165.20, and 1.63% to R13.11 respectively.
The All Share Index added 0.22% to 38,828 points.
Vodacom is still some way off its 52 week best of R129.88, which it achieved in January.
Vodacom says it expects headline earnings per share (HEPS) for the year ended March 2013, to be between 20% and 25% higher than the prior year reported HEPS of 709 cents per share.
Basic earnings per share (EPS) are expected to be between 25% and 30% higher than the prior year reported EPS of 694 cents per share, Vodacom said in a trading statement on Wednesday (24 April).
The group noted that basic EPS in the prior year was affected by impairment charges of R199 million in relation to Gateway.
The group concluded the disposal of Gateway Carrier Services on 31 August 2012, with the profit on disposal of $30 million (R223 million) having a favourable impact on EPS for the period, it said.
Both headline earnings per share (HEPS) and basic EPS were favourably impacted by strong underlying core operating performance and the replacement of secondary tax on companies (STC) with dividend withholding tax.
The tax expense in the prior year included an STC charge of R806 million, Vodacom said.
The group will publish its results on about 20 May 2013.