Vodacom shares rally on DSE market
DAR ES SALAAM: VODACOM shares have continued to strengthen on the Dar es Salaam Stock Exchange (DSE), sustaining an upward trajectory since the start of November.
The sustained rise in Vodacom’s share price signals growing investor confidence in the company and the telecommunications sector at large.
It reflects positive market sentiment, potential for strong earnings and can attract further investment, boosting liquidity and reinforcing the overall performance of the DSE.
The telecom’s average share price in the market remained above 570/- per share throughout the month, reinforcing expectations of strong dividends and growing investor confidence.
Notably, the average price reached 600/- per share between the end of last month and on third and fourth day of this month, reflecting heightened market optimism.
The sustained rally follows Vodacom Group’s recently released financial statement, which reported a 25.8 per cent increase in net profit for the second quarter ending September, driven by robust revenue growth.
The group’s net profit rose to 33.1bn/- at the end of Q2 from 26.3bn/- recorded during the same period last year, supported by a 22.7 per cent jump in total revenue to 469.4bn/- from 382.3bn/-.
ALSO READ: Tanzania reaps fortune in horticulture, agribusiness
The telecom’s financial statement also revealed a 41.2 per cent increase in operating profit to 66.7bn/- up from 47.2bn/- a year earlier.
The surge was largely attributed to significant gains from foreign currency transactions. Vodacom posted a net gain of 3.74bn/- from such transactions in the second quarter, a sharp turnaround from a loss of 804m/- posted in the same quarter last year.
The strong profit growth underscores Vodacom’s solid operational performance and resilience in the telecommunications sector.
It validates investor confidence, explains the share price rally and signals the company’s potential to continue delivering returns, contributing positively to market stability and the broader economy.
In addition, the group’s total assets also showed solid growth, reaching 3.24tri/- compared to 2.46tri/- in the corresponding quarter of the previous year.
Group’s direct expenses rose 16 per cent to 144.5bn/- while operating expenses also increased by 5.76 per cent 148bn/- mainly due to higher staff costs, public expenses and tower lease and maintenance costs.
According to the statement, staff expenses alone climbed 15.6 per cent to 23.1bn/- up from 19.9bn/- recorded in the same quarter last year.
