Vodacom share price: FY21 results update and trading view
In the below article we summarize FY21 results from Vodacom and take a look at how the share price is reacting to the news.
Vodacom FY21 results summary and forward guidance
A summary of the Vodacom FY21 results are as follows:
- Group revenue increased by 8.3% year on year (y/y)
- Earnings per share increased by 4.2% y/y
- Headline earnings per share (HEPS) increased by 3.7% y/y
- Final dividend of 410cps declared
- 8.2 million customers added over the period
- South African service revenue increased by 7%
- Total financial service customers increased by 12.9%
Vodacom now expects operating profit growth over the medium term to be between 5% and 10%. The medium term growth forecast is an upward revision from the group’s previously guide low to mid single digit growth expectation. Vodacom expects its Kenyan Safaricom and international operations to be the key drivers over the period.
Vodacom Group: technical analysis
The share price of Vodacom currently trades in a broad range between levels 12015 (support) and 13275 (resistance).
Range traders might prefer to look for long entry into Vodacom when the price trades closer to the 12015 to 12175 support range targeting a move back towards the 12940 level.
Breakout traders might hope for a close above the 12940 level to target a move back to the 13275 resistance level.
In Summary
- Full year HEPS up 3.7%
- Full year revenue up 8.3%
- 8.2million customers added over the period
- Final dividend of 410 cents per share declared
- The groups Safaricom and International operations are expected to drive mid to high single digit growth over the medium term
- Share price of Vodacom remains in a broad range trading environment, traders will look for either an upside break of resistance or bullish reversal at support for long entry
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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