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