Teargas
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- Mar 28, 2021
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Dar es Salaam. Vodacom Tanzania Plc shareholders will not receive a dividend this year after the company announced a net loss of Sh30 billion for the year to March 31, 2021, primarily on account of recalculated taxes.
“Following the net loss after tax for the year, the board of directors has decided not to recommend dividends in relation to the financial year ended March 31, 2021,” the company announced in its preliminary financial results. However, the company’s managing director, Mr Hisham Hendi, says looking forward, the firm’s cost management programme and proactive measures to drive digital and financial growth will improve the profitability of the Group in the new financial year.
“While we continue to make good progress on SIM cards registration, we remain cautious on the impact of Covid-19 and uncertainty about the pace of economic recovery that may weigh on disposable income as a result of reduced economic activities,” he says. It is the first time that Vodacom Tanzania has reported a net loss since it was listed on the Dar es Salaam Stock Exchange (DSE) in August 2017.
Vodacom Tanzania chief executive Hisham Hendi said in the firm’s financials that the GSM business made a loss during the year. This impacted the basis on which taxation was calculated in the current year, resulting in a higher tax charge compared with the previous year.
He added that the barring of services to 2.9 million customers has had a significant impact on the revenue and profits of the company.
“In addition, subdued economic activity due to the health crisis dampened customer spend,” Mr Hendi said.
“Following the net loss after tax for the year, the board of directors has decided not to recommend dividends in relation to the financial year ended March 31, 2021,” the company announced in its preliminary financial results. However, the company’s managing director, Mr Hisham Hendi, says looking forward, the firm’s cost management programme and proactive measures to drive digital and financial growth will improve the profitability of the Group in the new financial year.
“While we continue to make good progress on SIM cards registration, we remain cautious on the impact of Covid-19 and uncertainty about the pace of economic recovery that may weigh on disposable income as a result of reduced economic activities,” he says. It is the first time that Vodacom Tanzania has reported a net loss since it was listed on the Dar es Salaam Stock Exchange (DSE) in August 2017.
Vodacom Tanzania chief executive Hisham Hendi said in the firm’s financials that the GSM business made a loss during the year. This impacted the basis on which taxation was calculated in the current year, resulting in a higher tax charge compared with the previous year.
He added that the barring of services to 2.9 million customers has had a significant impact on the revenue and profits of the company.
“In addition, subdued economic activity due to the health crisis dampened customer spend,” Mr Hendi said.
