Vodacom profit growth accelerates as Safaricom consolidation lifts earnings

Details: Manny Pham; Category: Operators; 10 November 2026; 230 views

Vodacom Group increased EBITDA by 40% to ZAR42.7 billion (US$2.6 bn) in the six months to 30 September 2026, with the consolidation of Safaricom helping to boost earnings as the operator reported stronger growth across its African markets.

On a pro-forma basis, which assumes Safaricom was part of the group for the full comparative period, EBITDA increased by 18%, ahead of Vodacom's guidance.

Group revenue grew by 25.6% to ZAR102.5 billion, while service revenue increased by 29.4% to ZAR85.1 billion. Pro-forma service revenue growth was 13.3%, above the company's medium-term target.

Vodacom said the improvement reflected strong performances in Kenya, Egypt, Tanzania, the Democratic Republic of Congo (DRC) and Lesotho, alongside a recovery in South Africa's prepaid market.

Egypt was a key growth driver, with service revenue rising 36.3% in local currency and EBITDA up 31.3%. Safaricom recorded service revenue growth of 13.1% and EBITDA growth of 27.5%. Vodacom's International business, excluding Safaricom, delivered normalised service revenue growth of 13.7% and EBITDA growth of 15.9%.

In South Africa, service revenue growth remained modest, but the return of prepaid to growth and cost-cutting measures helped lift the EBITDA margin to 37.4%, its highest level in several years.

The results include Safaricom as a subsidiary from 30 June, following Vodacom's increase in its stake to 55%. The transaction has faced a legal challenge in Kenya, where the High Court declared the acquisition null and void. An appeal is under way, and the Court of Appeal has ordered that the existing position be maintained pending its outcome. Vodacom said it remains the registered shareholder.

Financial services continued to expand, with revenue increasing by 99% to ZAR15.9 billion. On a pro-forma basis, including Safaricom, growth was 19.2%. The group now has 108 million financial services customers, up 15%, while the combined platforms processed more than US$575.5 billion in transaction value over the past 12 months.

Vodacom's total customer base reached 250 million, an increase of 11.8% over the year. It also added 19 million smartphone users during the period, supporting demand for data and digital services.

The group invested ZAR13.3 billion in its networks during the half and declared an interim dividend of 355 cents per share, up 7.6%. It said it remained on track to deliver early-teens pro-forma EBITDA growth over the medium term.