By 
JOHANNESBURG — Vodacom Group has announced a pivotal transformation in its long-term strategy, driven by the successful consolidation of its stake in Kenya’s Safaricom and strong operational momentum across its African markets.
Reporting its trading update for the quarter ended 30 June 2026, the telecommunications and fintech giant delivered robust underlying revenue growth, upgraded its medium-term financial guidance, and significantly raised its Vision 2030 top-line ambitions.
Transaction Milestones Drive Portfolio Scale
The defining highlight of the quarter was the completion of Vodacom’s acquisition of a controlling stake in Safaricom, effective 30 June 2026, which increased its shareholding from 35% to 55%.
Group CEO Shameel Joosub described the transaction as a “defining moment” for the organization, significantly broadening its earnings drivers across connectivity, digital services, and financial inclusion. The consolidation fundamentally shifts Vodacom’s business mix into four distinct segment pillars: a mature, cash-generative South African operation, paired with high-growth engines in Egypt, Safaricom, and its International markets.
Following the transaction’s completion, Vodacom upgraded its core growth ambitions:
- Vision 2030 Revenue Ambition: Raised from over R200 billion to more than R300 billion.
- Medium-Term Earnings Targets: Upgraded medium-term EBITDA and operating free cash flow growth targets from double-digit to early-teens growth.
- Financial Services Expansion: Expanded the contribution of financial services to Group service revenue from 13% to over 22%.
Financial Highlights: Currency Headwinds vs. Underlying Momentum
For the first quarter, Vodacom’s top-line performance reflected operational acceleration across key divisions, though final reported figures in South African Rand (ZAR) were constrained by currency translation effects.
- Group Revenue: Rose 5.9% (11.4% on a normalized basis) to R42.4 billion, impacted by a stronger rand.
- Group Service Revenue: Increased 6.3% to R34.3 billion. On a normalized basis, growth reached 12.6%, tracking favorably against internal medium-term targets.
- Financial Services Revenue: Surged 17.8% (27.0% normalized) to R4.5 billion.
- Beyond Mobile Segment: Generated R7.8 billion, representing 22.8% of total Group service revenue.
+------------------------------------+------------------+---------------------+| Financial Metric | Reported (ZAR) | Normalized / Local |+------------------------------------+------------------+---------------------+| Group Revenue | +5.9% | +11.4% || Group Service Revenue | +6.3% | +12.6% || Financial Services Revenue | +17.8% | +27.0% || Egypt Service Revenue | N/A | +32.8% || International Service Revenue | +4.1% | +14.0% |+------------------------------------+------------------+---------------------+Divisional Performance Breakdown
South Africa
Service revenue in South Africa grew 2.0%, aided by a return to growth in the consumer prepaid segment. The turnaround was driven by commercial adjustments aimed at simplifying product propositions and boosting customer value. In fixed infrastructure, Vodacom invested an additional R0.8 billion into Maziv to support the completion of its Herotel transaction, aimed at accelerating fiber rollouts to bridge the digital divide.
Egypt
Egypt delivered strong regional growth, recording a 32.8% local-currency increase in service revenue. The surge was supported by network and spectrum investments. Egypt’s financial services division led local gains with revenue up 73.0%.
International Business & Fintech
International service revenues rose 4.1% in rand terms, but grew 14.0% on a normalized basis, driven by sustained demand in Tanzania, the Democratic Republic of Congo (DRC), and Lesotho.
Across all mobile money platforms—including Safaricom—Vodacom processed US$547.9 billion in transaction value over the last twelve months, marking a 19.1% year-on-year increase and cementing its footprint in African fintech. Operational highlights included launching Africa’s first mobile money tap-to-pay solution in Tanzania for over 22 million M-Pesa users.
Updated Dividend Policy & Capital Allocation
To accommodate its updated scale and portfolio reinvestment strategy, the Board reviewed Vodacom’s capital allocation framework.
The company adjusted its dividend policy to target a payout ratio of at least 65% of headline earnings. Management noted that this recalibrated level allows the business to retain flexibility for network investments, scale digital financial assets, and execute progressive deleveraging. Based on current trajectory and macroeconomic assumptions, the Board expects to deliver dividend-per-share growth for FY2027.
Outlook
With the regulatory and operational integration of major transactions like Safaricom and Maziv complete, Vodacom management indicated that focus now shifts entirely to execution. By deploying capital into faster-growing geographies and expanding its high-margin financial services ecosystem, the Group aims to leverage its increased balance sheet scale to unlock compound returns through 2030.
