Vodacom Group Ltd cut its dividend and reported earnings that missed estimates as Africa\u2019s biggest wireless carrier by market value absorbed the acquisition of a stake in Kenya\u2019s Safaricom Ltd and expanded its network.<\/p>\n
The unit of Vodafone Group reduced the annual payout to shareholders by 1.8% and said earnings per share were flat year-on-year due to the one-time effect of the Safaricom deal, chief financial officer Till Streichert said on a call with reporters.<\/p>\n
Even so, sales rose and the number of subscribers in markets including South Africa, Tanzania and the Democratic Republic of Congo passed 100 million.<\/p>\n
Vodacom announced the purchase of a 35% stake in Nairobi-based Safaricom from its parent a year ago to expand its sub-Saharan African operations and mobile-money offering, which is popular in countries with limited access to banks.<\/p>\n
Telecommunications companies see Africa as a high-growth market for data sales as technology becomes more accessible and less expensive.<\/p>\n
The shares fell 3.8% to R151.01 as of 1:42 p.m. in Johannesburg, paring gains for the year to 3.8%. Crosstown rival MTN Group Ltd is down 9.2%.<\/p>\n
Video Boost<\/strong><\/p>\n Vodacom is seeking to boost its fibre network in South Africa, which will enable it to offer customers a greater ability to stream video, music and gaming, chief executive officer Shameel Joosub said in a presentation to analysts and reporters. The company has agreed to deals with US streaming giant Netflix Inc and Naspers unit Showmax to supply content for a new video platform, to be launched in \u201ca few weeks\u201d.<\/p>\n Joosub also said he sees opportunities for growth in Tanzania after Vodacom raised 476 billion shillings ($208 million) in an initial public offering in the East African country last year.<\/p>\n Vodacom invested R11.6 billion to expand its African network, mostly in South Africa, and maintained targets such as mid-single digit service revenue growth.<\/p>\n
\n