| Tue 20 Oct 2009, 8:00 | | VOD - Vodacom Group Limited - Trading statement |
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VOD
VOD
VOD - Vodacom Group Limited - Trading statement
Vodacom Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/005461/06)
Share code VOD
ISIN ZAE000132577
("Vodacom Group")
Trading statement
In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies
are required to publish a trading statement as soon as they become reasonably
certain that the financial results for the next period to be reported upon
differ by at least 20% from those of the previous corresponding period.
Vodacom Group is in the process of finalising its interim results for the six
months ended 30 September 2009, which are expected to be released on or about
Monday 9 November 2009.
Notwithstanding the more difficult trading conditions, particularly in the
international operations, Vodacom Group is encouraged by its core operating
performance and expects group revenue growth of approximately 10% and earnings
before interest, taxation, depreciation and amortisation (EBITDA) growth of
approximately 8% for the six months ended 30 September 2009, compared to the six
months ended 30 September 2008.
Despite this satisfactory operating performance, headline earnings have been
affected by higher finance charges and losses on the remeasurement of financial
instruments. Furthermore, headline earnings were also impacted by the reversal
of a deferred taxation asset of approximately R500 million due to the reduced
profitability of Vodacom DRC arising from weak macroeconomic trading conditions
in that country.
Taking these factors into account, headline earnings per share (HEPS) for the
six months ended 30 September 2009 are expected to be between 10% and 20% lower
for the six months ended 30 September 2009, compared to the HEPS for the six
months ended 30 September 2008.
Vodacom Group also expects to recognise impairment losses of approximately R3.2
billion, mainly in relation to the Gateway acquisition as a result of recent
adverse changes in the economic environment, increased price competition and the
resulting poorer trading trends.
The main difference between basic earnings and headline earnings will be the
impairment of goodwill in relation to Gateway. Basic earnings per share (EPS)
for the six months ended 30 September 2009 are expected to be between 95% and
105% lower compared to the EPS for the six months ended 30 September 2008.
The financial information on which this trading statement is based has neither
been reviewed nor reported on by Vodacom Group`s auditors.
Midrand
20 October 2009
Sponsor: UBS South Africa (Pty) Limited
Date: 20/10/2009 08:00:06 Produced by the JSE SENS Department.
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