Vodacom results for the six months to 30 September show revenue up 25.6% to R102.5bn ($6.2bn), with Egypt and Safaricom driving growth while net debt rose to about $8.3bn after the Kenyan acquisition.
The South African group published its interim results on Tuesday, as reported by TechCabal and Businessday NG. Reported revenue was lifted partly by the consolidation of Safaricom, Kenya’s largest telecoms operator, from 30 June.
What do the Vodacom results show about growth outside South Africa?
Egypt delivered service revenue growth of 36.3% in local currency, while Safaricom grew service revenue by 13.1%, according to the Vodacom results. Tanzania, the Democratic Republic of Congo and Lesotho also performed strongly. Vodacom’s international business achieved normalised service revenue growth of 13.7%, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 15.9%.
In South Africa, the Vodacom results show the prepaid business returned to growth on higher data use, and cost cuts lifted the EBITDA margin to 37.4%, its highest in several years. Vodacom added 26 million customers over 12 months, taking its base to 250 million across Africa.
“We exceeded our medium-term growth target on service revenue, EBITDA, and operating free cash flow,” said Shameel Joosub, the chief executive.
How much has the Safaricom deal changed Vodacom’s finances?
Vodacom raised its stake in Safaricom to 55%. Net debt rose by about $4.8bn over the year to $8.3bn (R135.6bn), reflecting borrowing for the deal and some of Safaricom’s existing debt, Businessday NG reported. The ratio of net debt to EBITDA rose from 0.9 to 1.6.
Financial services revenue grew 99% to R15.9bn ($966mn) as reported, but only one quarter of Safaricom is included. On a pro forma basis, which counts Safaricom in the earlier period, growth was 19.2%. Over the past 12 months, Vodacom and Safaricom served 108 million financial services customers, who moved more than $575.5bn in transactions.
The Vodacom results also include an interim dividend of 355 cents a share, up 7.6%. Headline earnings per share rose 25.7% to 587 cents. Capital expenditure rose 41% to R13.3bn.
What is the risk in the Kenyan court case?
Vodacom’s interim report disclosed that a Kenyan High Court ruling on 15 September, which nullified the government’s sale of a 15% stake in Safaricom, triggered default clauses in some loan agreements, Businessday NG reported. Vodacom said it had secured waivers from the lenders and had missed no repayments. It reclassified about $141mn of long-term debt as short-term.
About $73mn of Safaricom dividends is held in a special account tied to an earlier loan default with Stanbic Bank Kenya, the report said. If the ruling were upheld, Vodacom’s effective holding could fall to about 40%. The Court of Appeal has ordered the existing shareholding to stay in place pending an expedited appeal, and Vodacom expects a hearing date before the end of December. The Kenyan government, Vodafone Group and Vodafone Kenya are also challenging the ruling.
What happens next?
With the Vodacom results, the company raised its 2030 target for financial services, fixed connectivity, digital and Internet of Things services to more than 32% of service revenue, from 30%; they now account for 27.4%. The appeal outcome will determine whether Vodacom keeps its 55% holding in Safaricom. For wider context, see DNE Africa’s coverage of Nigeria’s mobile market and of the countries leading Africa’s 2026 tech boom.
FAQ
What do the Vodacom results show?
Revenue rose 25.6% to R102.5bn for the six months to 30 September, with Egypt service revenue up 36.3% in local currency and Safaricom consolidated from 30 June.
How much debt does Vodacom have after the Safaricom deal?
Net debt was about $8.3bn (R135.6bn), up roughly $4.8bn in a year, according to Businessday NG’s reading of the interim report.
Why does the Kenyan court ruling matter for the Vodacom results?
The High Court ruling on 15 September nullified the sale of a 15% Safaricom stake and triggered default clauses in some loans. Lenders granted waivers, and an appeal is pending.
What is Vodacom’s customer base in the Vodacom results?
Vodacom said it serves 250 million customers across Africa, 26 million more than a year earlier.
