Vodacom raises dividend after Sh53.4 billion profit
Vodacom Tanzania board chairman Judge (retired) Thomas Mihayo (second left), addresses the media after the company’s annual shareholders meeting in Dar es Salaam yesterday. Others from left include Vodacom Tanzania managing director Philip Besiimire, board member Margaret Ikongo and the company’s chief financial officer Hilda Bujiku. PHOTO | COURTESY
What you need to know:
- The dividend per share is an increase of about 20 percent compared to Sh9.95 paid during the previous financial year, according to the company statements
Dar es Salaam. Vodacom Tanzania PLC has approved a final dividend of Sh11.93 per share following a profit after tax of Sh53.4 billion for the financial year ending March 31, 2024.
The dividend per share is an increase of about 20 percent compared to Sh9.95 paid during the previous financial year, according to the company statements.
The total payout, which represents half of the company’s profit after tax, reflects Vodacom’s dividend policy during listing on the Dar es Salaam Stock Exchange (DSE), in which it promised to pay at least 50 percent of the earnings after tax to the shareholders.
The company held the Annual General Meeting (AGM) yesterday, with the shareholders approving the final dividend.
“The success is due to our comprehensive cost optimisation programme which was implemented without compromising customer experience or investments.
Given this robust financial performance, the board has approved a final dividend of Sh11.93 per share, which corresponds to 50 percent of our profit after tax,” said Vodacom chairman, Justice (retired) Thomas Mihayo.
“On behalf of the board, I express our collective appreciation to Vodacom’s executive team, employees, and business partners for their contributions to this year’s successful performance,” he added.
He also highlighted Vodacom’s resilience in maintaining its leading market position amid a challenging operating environment.
“Our investments in infrastructure and innovative products have been supported by improved government-business dialogue and regulatory certainty. The removal of levies on peer-to-peer mobile money transactions has been a key factor in this positive development,” he said.
Vodacom Tanzania’s managing director, Mr Philip Besiimire, attributed the company’s performance to effective strategy execution, resilience, and a favourable regulatory environment.
He pointed to the removal of mobile money levies, reduced fees for communications infrastructure, and pro-investment government policies as key factors that allowed Vodacom to confidently plan for future growth.
“With 10 million active M-Pesa customers and a 30.5 percent market share, we have strengthened our position as a leader in the telecommunications sector. M-Pesa saw a 27.8 percent increase in revenue and a 36 percent rise in transaction value. Our customer base grew by 16.9 percent to 19.6 million, and data users increased by 15.1 percent to 10.1 million,” Mr Besiimire said.
Vodacom invested Sh170.1 billion during the year to expand network coverage, accelerate its 4G and 5G rollout, and modernise IT infrastructure, he said, adding that the investments are aimed at enhancing customer experience, improving cybersecurity, and tapping into opportunities in underdeveloped segments.
The company also completed the acquisition of Smile Communications Tanzania Limited in March 2024, gaining access to spectrum in the 800MHz and 2600MHz bands.
Mr Besiimire said the acquisition will further enhance Vodacom’s network infrastructure and improve customer service.
Looking to the future, Mr. Besiimire expressed confidence in Vodacom’s ability to capitalise on Tanzania’s young and growing population, as well as the relatively low digital penetration, which presents growth opportunities, particularly in the FinTech space.
