Analysts estimate Vodacom payout to Makate under 1% of annual revenue


Analysts have estimated that the out-of-court settlement between Vodacom and ‘Please Call Me’ originator Nkosana Makate is likely to be less than 1% of the group’s annual revenue.

The mobile operator announced on Wednesday that the matter had been settled after 18 years of litigation.  

While Vodacom has not disclosed how much it is paying Makate, the company says it has been accounted for in its interim results due on Monday.  

Portfolio Manager at Mianzo Asset Management Thembeka Sobekwa says based on the updated trading statement, the payment could be between R350 million to R700 million, significantly less than what Makate initially sought. 

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