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Vodacom Cuts Dividend Amid Flat Earnings, Network Spending

Loni Prinsloo
Vodacom Cuts Dividend Amid Flat Earnings, Network Spending

Vodacom Group Ltd. cut its dividend and reported earnings that missed estimates as Africa’s biggest wireless carrier by market value absorbed the acquisition of a stake in Kenya’s Safaricom Ltd. and expanded its network. The unit of Vodafone Group Plc reduced the annual payout to shareholders by 1.8 percent and said earnings per share were flat year-on-year due to the one-time effect of the Safaricom deal, Chief Financial Officer Till Streichert said on a call with reporters. Vodacom announced the purchase of a 35 percent stake in Nairobi-based Safaricom from its parent a year ago to expand its sub-Saharan African operations and mobile-money offering, which is popular in countries with limited access to banks.