Shares of Vodacom Group Limited appear Undervalued in this High-Yielding South African-Based Telecom Company by BrokerBank Securities, Inc.

NEW YORK, June 23, 2014 /PRNewswire/ -- Vodacom Group Limited (OTCBB: VDMCY) is a leading mobile and communications company providing a wide range of services, including mobile voice, messaging, data and converged services to approximately 57.5 million customers in South Africa and internationally throughout the African continent. The company also offers internet and fixed line services, as well as M-Pesa – a proprietary mobile money transfer service. In addition to their chief presence in South Africa, Vodacom has grown their mobile operations to include networks in Tanzania, the Democratic Republic of Congo (DRC), Mozambique and Lesotho. The company also offers business managed services to enterprises in over 40 countries across Africa. Further, Vodacom is majority owned (65%) by Vodafone Group PLC (VOD).

The mobile telecommunications market in Africa is rather bifurcated with some countries, such as South Africa, experiencing high levels of penetration and some countries, such as DRC, exhibiting fairly low levels of penetration. Overall, Africa has the lowest mobile penetration in the world despite having a population over one billion. As a result, the growth potential there in mobile is among the highest in the world.

As higher speed networks (see: 3G and 4G) and more advanced devices become more commonplace in the market, the rate of growth in data traffic is likely to far outstrip the growth in mobile connections. Currently, the proportion of these higher speed networks is approximately 33%, but that is expected to double by 2020. In order to deal with this increase in global data traffic, mobile operators have invested substantially in their networks by extending the quality, speed and coverage of data connectivity. Meanwhile, the advent and growing acceptance of mobile financial services can help transform the daily lives of people and drive socioeconomic development in developing regions around the world. Through mobile technology, financial services can be brought to previously unbanked and under-banked populations of the world, helping drive economic growth and promoting financial inclusion.

A full in-depth analyst report on VDMCY that includes risk factors, industry review, financial position, potential revenues, review of current business model, competition breakdown, analyst summary, and recommendation can be viewed by using the following link at no cost:

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FORWARD-LOOKING DISCLAIMER   

This report may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward- looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of mentioned company to be materially different from the statements made herein.   

COMPLIANCE PROCEDURE   

Content is researched, written and reviewed on a best-effort basis. Research report provided for informational purposes. This document, article or report is written and authored by Michael Maggi, Chartered Financial Analyst. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

A full disclaimer can be found by viewing the full analyst report.

BrokerBank Securities, Inc. is a member of the Financial Industry Regulatory Authority, CRD number #130116.

SOURCE BrokerBank Securities, Inc.

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