Vodacom Group delivered one of its strongest six-month performances to date, reporting headline earnings per share (HEPS) growth of 25.7% following the consolidation of Safaricom, while reaching a milestone of 250 million customers across Africa.
The telecommunications giant’s results, announced Thursday, showed Group revenue of R102.5 billion, up 25.6%, positively impacted by the Safaricom consolidation. Service revenue grew 29.4% in rands and increased 13.3% on a pro-forma basis, exceeding the company’s medium-term targets.
Shameel Joosub, Vodacom Group CEO, commented: “The strong momentum delivered in the first quarter accelerated through the second quarter, resulting in one of Vodacom’s strongest six-month performances to date. We exceeded our medium-term growth target on service revenue, EBITDA, and operating free cash flow, while also reaching the milestone of serving a quarter of a billion customers across Africa.”
EBITDA increased 40.0% to R42.7 billion, and 18.0% on a pro-forma basis. Joosub confirmed the company is “tracking ahead of our medium-term EBITDA target, with an early-teens outlook confirmed.”
Financial Services Emerges as Key Growth Driver
Financial services revenue surged 99.0% to R15.9 billion, and up 19.2% on a pro-forma basis including Safaricom. The Group now serves 108 million financial services customers, up 15.0%.
“Financial services remain one of the most compelling elements of the Vodacom investment case and increasingly one of the Group’s most important growth drivers,” Joosub stated. “The combination of Vodacom and Safaricom creates one of the continent’s largest FinTech platforms, with pro-forma financial services revenue of R43.1 billion (US$2.6 billion) over the last twelve months.”
Customers used Vodacom’s financial services platforms to initiate more than US$575.5 billion in transaction value over the same period, demonstrating the company’s commitment to financial inclusion.
Safaricom Acquisition: Legal Challenge and Strategic Confidence
The period marked a defining milestone with Vodacom’s shareholding in Safaricom increasing to 55%. However, Joosub addressed the legal challenge facing the transaction.
“While the High Court in Kenya recently declared the acquisition null and void, an expedited appeal is underway and the Court of Appeal (Nairobi) has ordered that the status quo be maintained, meaning we remain the registered shareholder of the shares pending the outcome of the appeal,” Joosub explained. “Our confidence in the strategic rationale of the transaction remains unchanged, with Safaricom accounted for as a subsidiary of the Group from 30 June 2026.”
Customer Growth and Digital Expansion
Vodacom added 26 million customers over the last twelve months, taking its customer base to a record 250 million, up 11.8%, moving closer to its Vision 2030 ambition of serving 275 million customers.
“Connecting people remains one of the most powerful catalysts for economic and social progress,” Joosub said. “Over the last twelve months, we connected a further 19 million smartphones, extending the reach of our digital ecosystem and creating new opportunities to monetise data, financial services and digital platforms.”
Beyond mobile services, including fixed, digital and IoT offerings, now contribute 27.4% of Group service revenue. Following the Safaricom transaction, Vodacom increased this ambition from 30% to more than 32% by 2030.
Regional Performance Highlights
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Egypt: Delivered local-currency service revenue growth of 36.3% and EBITDA growth of 31.3%
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Safaricom: Service revenue growth of 13.1% and EBITDA growth of 27.5%, with Ethiopia nearing EBITDA break-even
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International business: Normalised service revenue growth of 13.7% and EBITDA growth of 15.9%
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South Africa: EBITDA margin expanded to 37.4%, the highest level in several years, with prepaid returning to growth
Dividend and Capital Returns
The Board declared an interim dividend of 355 cents per share, up 7.6%, reflecting the Group’s revised payout policy. Joosub noted this “balances a commitment to deleveraging the Group’s balance sheet with enhanced growth prospects.”
Return on capital employed (ROCE) remained stable at 26.5% over the last twelve months.
Looking Ahead
Reflecting on the half-year results, Joosub emphasised the company’s evolution: “These results represent more than a strong financial performance. They demonstrate Vodacom’s continued evolution into a more diversified business, with broader earnings drivers, greater geographic balance and increasing exposure to attractive structural growth opportunities.”
“As we enter the second half, our focus is firmly on execution, accelerating operational leverage and realising the full value of our portfolio,” he concluded. “Backed by strong market positions, scaled FinTech platforms, disciplined capital allocation and growing diversification, we are on track to deliver our medium-term guidance and progress our Vision 2030 ambitions.”
