October 28, 21:29TechCentral

Vodacom recognizes profit of 23 billion rand amid legal disputes with Safaricom

Vodacom will record a one-off profit of 23.2 billion rand from Safaricom in its interim results, despite Kenyan courts deciding whether to annul the acquisition of the operator's controlling stake.

This profit, announced in a trading statement on Wednesday, will increase earnings per share for the six months ended September 30 by 272%–279%, bringing it to between 1756 and 1789 cents. Vodacom attributed this to the 'revaluation of previously held interest in Safaricom.'

This amount is a result of accounting arising when gaining control over a business in which the company already held a stake. When a company gains control over an enterprise in which it already owns a part, it must revalue that stake at fair value and recognize any difference between this value and the book value as a profit or loss. Before completing the acquisition of an additional 20% on June 30, Vodacom owned about 35% of Safaricom, including 15% from the Kenyan government and an effective 5% from its parent company Vodafone Group, which brought it to 55% and made Safaricom a subsidiary.

The profit is tax-exempt and does not affect the earnings per share metric, which is the main measure of profitability on the JSE and excludes capital items such as this revaluation. Vodacom forecasts an EPS growth of 22%–27%, to 570 cents–593 cents compared to 467 cents the previous year. The company did not specify what portion of this growth will be due to the consolidation of Safaricom from July.

The trading statement did not mention the legal disputes. In September, the Kenyan Court of Appeal ruled that the sale of the 15% stake by the state was 'unconstitutional, void' and ordered the shares to be returned to the state. The Kenyan government and Vodacom appealed.

Legal Disputes

On October 13, the Court of Appeal ruled to maintain the current status quo pending consideration of the accelerated appeal, leaving Vodafone Kenya, a Vodacom subsidiary, as the registered shareholder. If the high court's decision takes effect, Vodacom's stake will decrease to approximately 40%, and it will lose the majority. Furthermore, the 5% of shares purchased from Vodafone are not affected by this ruling.

Vodacom plans to publish its interim results on November 10.

Similar stories

flatout.com.brOctober 29, 01:06

Guide on how to select NPT, AN, Aeroquip connections and hoses and fittings for vehicles

The content presented is restricted to members of the Flatout family, offering unlimited access to in-depth and authentic material, in contrast to common sensationalist journalism.

For those who already have an account or are Flatout subscribers, this material may be unavailable because it is exclusive to subscribers or because the limit of free articles for the current month has been reached.

olhardigital.com.brOctober 29, 24:03

Best robot vacuum cleaners on sale on Amazon to keep the house clean

Keeping floors clean has become significantly simpler thanks to robot vacuum cleaners, and now is a good time to purchase one. Three options available on sale on Amazon have been selected, suitable for different profiles and needs.

The WAP Robot Vacuum Cleaner ROBOT W400 3 in 1 represents a complete solution for those seeking daily convenience. This model combines the functions of vacuuming, sweeping, and mopping simultaneously. Its compatibility with voice assistants allows cleaning to be started with just a voice command. With a 300ml reservoir and 30W power, it ensures effective sanitization on various floor types, and its bivolt design eliminates voltage concerns.

The WAP Robot Vacuum Cleaner Robot W90 3 in 1 is presented as an accessible entry point into the world of robot vacuums. Similar to the W400, it performs the tasks of vacuuming, sweeping, and mopping, making it suitable for smooth surfaces and light carpets. A notable feature of this device is the anti-fall system, which prevents the device from falling down stairs, in addition to being bivolt for use in any Brazilian outlet.

For those who prefer greater autonomy and technology, Xiaomi launched the Smart Robot Vacuum Cleaner S40C in white (XM865BRA) in Brazil. This robot uses intelligent navigation technology, allowing it to map the environment and optimize the cleaning path. It adapts well to homes with various floor types and offers integration with an application for remote control and scheduling cleanings.

It is important to note that stock for these offers is subject to change at any time. If any of these models have sparked interest, it is recommended to access the link immediately to secure the purchase before the promotion ends.

olhardigital.com.brOctober 28, 23:50

Amazon cuts up to 250 jobs in devices division following new product launches

Amazon implemented cuts of up to 250 positions in its devices and services area on Wednesday, the 28th, due to a series of product launches that included new Kindle readers and tablets.

According to Reuters, the layoffs were mainly concentrated among professionals dedicated to software development and are part of an internal team restructuring. The company confirmed the dismissals after being contacted by the news agency.

A company spokesperson stated in a release that Amazon made the 'difficult decision to eliminate a small number of positions,' but did not specify the exact number of affected employees. Sources close to the matter, spoken to by Reuters, indicated that the number of removed vacancies does not exceed 250.

The justification presented by the company for this action is the search for greater operational efficiency and aligning the team with product planning. The cuts occur after an intense period for the Amazon devices division, which recently introduced new Kindle e-readers, tablet computers, as well as a smart alarm clock and a digital frame equipped with the Alexa assistant.

Cherie Robinson, Vice President of Human Resources for the Devices and Services division, informed employees that the company conducted a complete analysis of its structure and identified the need to reduce the workforce. Amazon did not provide details on which teams were affected or if there would be project cancellations as a result of these layoffs.

This new cycle of reductions comes just weeks after another staff cut at the corporation. At the beginning of October, Amazon had eliminated approximately one thousand jobs in its main retail sector, primarily affecting areas related to commercial operations. The current measure, in contrast, focuses on the division responsible for devices and services.

Amazon is expected to release its third-quarter financial results on Thursday, the 29th, after the market closes. Although the balance sheet may bring more information about the company's performance, the company has not officially linked the cuts made on Wednesday to its financial results.