JOHANNESBURG, July 27 (Reuters) – South Africa’s Vodacom Group (VODJ.J),upgraded its medium-term growth targets on Monday after completing its acquisition of a controlling stake in Kenya’s Safaricom (SCOM.NR), while also reducing its dividend payout ratio.
The Vodafone (VOD.L), majority-owned company said it had upgraded its medium-term target for earnings before interest, tax, depreciation and amortisation (EBITDA) and operating free cash flow growth to the early teens, from its previous target of double-digit growth.
As part of a broader review of its capital allocation framework, Vodacom also updated its dividend policy to a payout ratio of at least 65% of headline earnings from 75%.
($1 = 16.6957 rand)
Reporting by Nqobile Dludla, Editing by Louise Heavens.
