Dividend boost for Vodacom investors

Johannesburg - Vodacom [JSE:VOD] boosted annual headline earnings by 22.3%, and said it will increase dividend and spend R7.4bn in capital expenditure.

Vodacom, which is majority-owned by Britain's Vodafone, said headline earnings per share for the year to end-March rose 22.3% to 510c.

Headline earnings, which strip out some one-off and non-trading items, are the main profit gauge in South Africa.

South Africa's largest cellphone operator declared a final dividend of 175 cents per share, and said it would increase the dividend payout ratio to 60% in full-year 2011 from 40%.

"Our strengthened financial position supports an increase in our dividend payout to shareholders," said Vodacom CEO Pieter Uys.

MTN [JSE:MTN], Africa's largest cellphone company by subscribers, said in March its adjusted headline earnings per share for the year to end-December dropped 16.6% to 754.3c. The company is is currently in talks to buy assets from Egypt's Orascom Telecom.

 - Reuters