Jonathan Kennedy-Good's questions to Vodacom Group Ltd / ADR (VDMCY) leadership • FY 2023
Question
Jonathan Kennedy-Good from JPMorgan Chase & Co. inquired about the drivers for the expected improvement in South African service revenue, whether revised group guidance includes Safaricom, and if Vodacom would consider increasing its Safaricom stake.
Answer
CEO Shameel Joosub attributed the positive South Africa outlook to strong Q4 prepaid performance, network availability, a 5-7% price increase, and lapping the impact of the RT15 government contract. He also noted that while the Safaricom asset is attractive, Vodafone is unlikely to sell its stake at current prices. CFO Raisibe Morathi clarified that the group's medium-term guidance for service revenue and EBITDA growth excludes Safaricom, which has provided its own separate guidance.