SA's largest cellular operator, Vodacom, has given most of its free cash flow in the first half of the year back to shareholders.
The company this morning released its interim results for the period to September, showing improved revenue from R28.6 billion a year ago, to R29.5 billion.
Headline earnings per share moved up from 219c to 303c, and earnings per share leapt to 300c, from 4c, as last year's figures contained once-off items that did not recur.
Vodacom has cash and cash equivalents of R938 million, up from last year's R729 million but down from the R1 billion it had at the end of March. It generated R9.3 billion from operations, of which R2.15 billion went to tax, and capital expenditure cost another R2.8 billion.
However, free cash flow improved 66% to R3.8 billion, as the company paid less in capital expenditure and saved on finance charges due to lower debt and better interest rates. It paid R843 million in finance charges compared with R1 billion a year ago.
CFO Robert Shuter says most of the free cash flow has been given back to shareholders through share repurchases and an increased dividend.
The company spent almost a billion buying back shares, which reduces the number of shares in issue and should result in a higher share price. In addition, it increased its dividend by 63.6%, paying out 180c a share, compared to last year's 110c. The dividend payout cost the operator another R2.7 billion.
Vodacom's shares were trading at R68.60 in early afternoon trade, a 1.18% or 80c improvement on the day.
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