Group revenue climbs to R42.4 billion despite stronger rand
Vodacom has kicked off its new financial year with solid first-quarter results, reporting Group revenue of R42.4 billion, a 5.9% increase, as the telecommunications giant completed one of the most significant transactions in its history by taking a controlling stake in Safaricom.
While the stronger South African rand weighed on reported earnings across several markets, the Group’s underlying performance remained robust. Normalised Group service revenue accelerated by 12.6%, comfortably tracking toward Vodacom’s medium-term target of double-digit growth.
Service revenue rose 6.3% to R34.3 billion, supported by continued momentum in financial services and expanding digital offerings across Africa.
Safaricom acquisition marks a defining milestone
The standout development during the quarter was Vodacom’s acquisition of a 55% controlling stake in Safaricom, up from its previous 35% shareholding. The transaction became effective on 30 June 2026 and significantly strengthens the Group’s presence across East Africa.
Vodacom Group CEO Shameel Joosub described the acquisition as a transformational moment for the business.
He said the deal enhances the company’s scale, diversification and long-term growth prospects while positioning Vodacom to capture more opportunities in connectivity, digital services and financial inclusion across the continent.
The stronger outlook has prompted the company to upgrade its medium-term EBITDA and operating free cash flow growth targets from double-digit growth to early-teens growth.
Vision 2030 revenue target lifted to over R300 billion
Following the Safaricom acquisition, Vodacom has significantly increased its long-term ambitions.
The Group has raised its Vision 2030 revenue target from more than R200 billion to more than R300 billion, reflecting confidence in its expanded African footprint and diversified earnings base.
Financial services are also expected to become an even larger contributor to the business, with their share of Group service revenue increasing from 13% to more than 22% after incorporating Safaricom.
Financial services continue to drive growth
Vodacom’s financial services business remained one of its strongest growth engines during the quarter.
Financial services revenue increased 17.8% to R4.5 billion, while normalised growth accelerated to 27%.
Including Safaricom, the Group now processes approximately US$547.9 billion in mobile money transactions annually—an increase of 19.1% over the past year—highlighting the growing importance of fintech within Vodacom’s broader strategy.
Beyond-mobile services generated R7.8 billion, accounting for 22.8% of Group service revenue.
Egypt and international markets fuel expansion
Vodacom’s operations outside South Africa continued to deliver impressive growth.
Egypt remained the standout performer, recording 32.8% service revenue growth in local currency, driven by continued investments in spectrum and network infrastructure. Financial services revenue in Egypt surged 73%.
Meanwhile, Vodacom’s international business delivered 14% normalised service revenue growth, with Tanzania, the Democratic Republic of Congo and Lesotho making strong contributions.
Reported international service revenue increased 4.1% in rand terms despite foreign exchange pressures.
South Africa returns to prepaid growth
Vodacom South Africa delivered a stable performance with service revenue increasing 2%.
The company noted that its prepaid segment returned to growth during the quarter following efforts to simplify pricing and improve value propositions for customers.
The business also continued investing in broadband infrastructure, committing a further R0.8 billion into Maziv to support the completion of the Herotel transaction, a move aimed at accelerating fibre connectivity across South Africa.
Innovation supports financial inclusion across Africa
Beyond financial performance, Vodacom highlighted several initiatives designed to expand digital inclusion across its markets.
These include:
- Launching Africa’s first mobile money tap-to-pay solution in Tanzania, allowing more than 22 million M-Pesa customers to make contactless payments directly from their mobile wallets.
- Using anonymised mobile data in the Democratic Republic of Congo to strengthen Ebola preparedness and public health planning.
- Partnering with government and development agencies in Ethiopia to create sustainable employment opportunities for vulnerable young people.
- Supporting innovation through the UN Global Compact SDG Innovation Accelerator programme.
Updated dividend policy reflects confidence
Following the completion of both the Safaricom and Maziv transactions, Vodacom’s Board has also revised its capital allocation framework.
The company has updated its dividend policy to distribute at least 65% of headline earnings, while expecting to grow its dividend per share during the 2027 financial year, subject to prevailing economic conditions.
With a more diversified earnings mix spanning South Africa, Safaricom, Egypt and its international operations, Vodacom believes it is now better positioned to deliver sustainable growth, stronger cash generation and long-term value for shareholders as it accelerates toward its Vision 2030 ambitions.
