VODACOM Tanzania shares traded at the beginning of the week painted a picture of investors’ confidence, especially after a single-digit dividend announcement.
The confidence, also, might be restored after the largest telecom and the only listed on the exchange in the country posted a net profit for the year ending March.
Tanzania Securities Limited (TSL) said in its Daily Market Report on Tuesday that some of its shares traded at 740/-, which reflects the year profit and the dividend offer.
“Investors’ confidence in Voda has begun to be restored, following the net profit the company reported for the fiscal year ending March,” TSL said in the report.
The counter on Tuesday traded 27 shares at an average price of 740/- per share.
Last Thursday, Vodacom declared to pay a dividend of 9/95 per share, which represents a dividend yield of 1.3 per cent.
The country’s telecom giant has been making losses since 2021, when the entity recorded a loss per share of 13/44.
Additionally, last year it made a loss of 9/05 per share, which is a decrease of 33 per cent.
However, in the fiscal year to March, the company recorded an improved profit of 19/89 per share.
“The positive profitability trend indicates that the company is recovering from losses, and we foresee a prosperous future for Vodacom,” TSL said.
The stock brokerage firm projected the firm share might recover to reach the highest Earning per Share (EPS) of 83/81 reported in 2018.
However, Voda in its first quarter of the financial year that ended in June generated 17.7bn/- in operating profit, which was 117.8 per cent increase, supported by strong top-line performance and cost efficiencies.
Despite posting a hefty increase in operating profit, the firm reported a 7.0bn/- loss after tax, a 25.3 per cent improvement compared to a loss of 9.4bn/- in the corresponding quarter last year.