Vodacom Group has released a set of financial results that shows headline earnings and free cash each growing by more than 20%, the benefits of our revenue and geographic diversification are apparent, even amid a complex and dynamic macroeconomic environment.
The latest financials for the year to end-March 31, 2006 reflected a final dividend of R8.4 billion (405 cents per ordinary share) for the year ended 31 March 2026.
Vodacom generated operating free cash flow of R33 billion, up 10.3%, reflecting the growth in EBITDA.
The Vodafone-owned telco also invested R23.6 billion into capital expenditure, a further R7.4 billion was applied to lease payments.
As expected, the working capital outflow reported in the first half of the financial year substantially reversed into the second-half of the financial year. Vodacom Group’s free cash flow, which captures our cash interest, tax, net dividends received from associates and paid to minority shareholders was R21.8 billion. The growth rate of 20.1% exceeded that of operating free cash flow as a result of lower interest rates in the year and higher net dividends received.
“We have delivered a strong start to our Vision 2030 strategy. This was a year that reflected both continuity and acceleration: staying true to the strengths that have served us well, while confidently stepping into the next phase of our growth journey. With headline earnings and free cash each growing by more than 20%, the benefits of our revenue and geographic diversification are apparent, even amid a complex and dynamic macroeconomic environment,” said Shameel Joosub, Vodacom Group CEO.
“Pleasingly, our strong commercial momentum has positioned us to upgrade our Vision 2030 customer aspirations and confirm our medium-term targets. Throughout FY2026 and our Vision 2030 strategy, our purpose – connecting people for a better future – remains a decisive driver of strategy and execution, shaping how we invest, scale and deliver sustainable impact across our markets.
“We made tangible progress on delivering on our strategy in the year, marked by two milestone transactions that strengthen our long-term growth profile and accelerates inclusive connectivity across our footprint. In December, we announced an agreement to acquire an additional 20% stake in Safaricom. This transformational transaction reinforces our commitment to the high growth East African markets of Kenya and Ethiopia. The closing of this transaction is subject to an ongoing court process in Kenya.”
In December, Vodacom finalised the acquisition of a strategic stake in Maziv, a South African fibre business, unlocking the opportunity to accelerate fibre deployment and expand access to high quality connectivity, particularly in historically underserved communities.
In 2026 financial year, Vodacom added 26 million customers across the group, more than double its annual Vision 2030 target of 10 million customers, taking its total customer base to 237.3 million across eight markets.
“This scale is driving greater connectivity, productivity and financial inclusion, and underpins our decision to increase our Vision 2030 customer ambition to 275 million, reflecting confidence that the growth opportunity remains far from fully realised,” said Joosub.
Group service revenue grew by 10.6% to R133.6 billion, or 12.9% on a normalised basis, tracking comfortably ahead of our double-digit medium‑term target.
The company said this result was supported by strong performances in Egypt, Tanzania, the Democratic Republic of Congo (DRC) and Lesotho, alongside resilience in South Africa and Mozambique. Group EBITDA increased by 12.8% to R62.6 billion, representing 14.2% normalised growth, with EBITDA margins expanding to 37.4%.
“Our diversified portfolio continues to demonstrate resilience across geographies. Egypt delivered an impressive performance, with local‑currency service revenue and EBITDA growth of 36.2% and 44.5% respectively, and a contribution of 29.7% to Group EBITDA,” said Joosub.
The International business delivered service revenue growth of 14.4% on a normalised basis, with double‑digit local‑currency growth across Tanzania, DRC and Lesotho. International business EBITDA was up an impressive 27.8% in rands. South Africa delivered a stable performance, with service revenue growth of 2.1%, supported by an improving prepaid trend in the fourth quarter, strong data demand and continued growth in beyond mobile services. South Africa EBITDA returned to growth in the second half of the financial year, having been impacted by a one-off settlement agreement in the first half of the financial year.
Safaricom, an associate of Vodacom, delivered an excellent performance with shilling service revenue growth of 11.5%, EBITDA growth of 27.9%, and net income up 37.0%. Safaricom contributed R4.6 billion to Group operating profit, an increase of 38.3%.
“This result was underpinned by sustained operational excellence in Kenya and improving scale in Ethiopia. We were encouraged by Ethiopia’s performance, with customer growth of 54.2% to 13.6 million and losses narrowing as the business continues to scale,” said Joosub.
The strong results from Egypt, Vodacom’s International business and Safaricom translated into strong earnings growth, with headline earnings per share increasing by 22.9% to 1 053 cents. Consistent with our dividend policy of paying out at least 75% of headline earnings, the board has declared a final dividend of 405 cents per share, up 20.9%, bringing the total dividend for the year to 735 cents per share, up 18.5%.
Financial services remains a core pillar of Vodacom’s growth strategy and a powerful engine for inclusion. Financial services customers increased by 17.4% to 103 million, including Safaricom, supported by growth across payments, insurance, savings, lending and merchant services. Reflecting the strength of this momentum and the scale of opportunity ahead we have upgraded our Vision 2030 ambition for financial services customers to 130 million, from 120 million previously. Meanwhile, our leadership in African Fintech remains evident by the scale of transaction value we process, which reached US$525.6 billion in the year, up 16.6%.
Beyond mobile services, which include financial services, fixed, digital and IoT, generated R29.8 billion, contributing 22.3% of Group service revenue and demonstrating steady progress towards our ambition of approaching 30% by 2030.
“The two milestone transactions, Safaricom and Maziv, are expected to materially enhance the Group’s beyond mobile positioning. The Group’s fibre footprint will extend to 3.6 million homes passed, strengthening our connectivity leadership and long‑term growth potential, when the Safaricom transaction completes,” said Joosub.
