Johannesburg: TECHz – News Desk
Vodafone Group and its African subsidiary, Vodacom Group, have reported a strong start to the 2027 financial year, posting double-digit organic service revenue growth across their African operations for the quarter ended 30 June 2026.
The quarter was marked by robust momentum in Egypt, a turnaround in South Africa’s prepaid segment, and a milestone $2.1 billion (R35 billion) acquisition that gives Vodacom a controlling stake in Safaricom.
Vodafone Group announced that total global revenue rose 9.7% to €10.3 billion, bolstered by service revenue growth and the consolidation of Three UK. Global organic service revenue increased by 5.2%, but the African continent delivered a standout 12.6% organic service revenue growth, driven by connectivity and financial services performance in Egypt and Vodacom’s international markets.
A defining moment of the quarter was Vodacom Group’s completion of an additional 20% stake purchase in Safaricom, increasing its shareholding from 35% to 55%. The R35 billion deal included acquiring a 15% stake from the Kenyan government and an effective 5% from Vodafone Group. Vodacom Group CEO Shameel Joosub described the acquisition as a major milestone for the company’s Vision 2030 journey, noting that it materially expands their financial services footprint. The Kenyan government retains a 20% shareholding in Safaricom.
Vodacom Group reported total revenue of R42.4 billion, representing a 5.9% year-on-year increase despite the impact of a stronger rand on international earnings. Group service revenue rose by 6.3% to R34.3 billion, or 12.6% on a normalised basis. In South Africa, the home market delivered a stable 2% increase in service revenue, with the prepaid segment returning to growth. Egypt remained the standout performer, with service revenue climbing 32.8% in local currency and its financial services expanding by 73%. International business service revenue saw robust 14% normalised growth, backed by strong contributions from Tanzania, the Democratic Republic of Congo, and Lesotho.
Financial services continue to be a massive growth engine. Vodacom’s group financial services revenue increased by 17.8% to R4.5 billion, with normalised growth accelerating to 27%. Across its platforms, including Safaricom’s M-Pesa business, Vodacom now processes $547.9 billion in mobile wallet transaction value annually, representing a 19.1% increase.
Following the successful consolidation of Safaricom and continued operational momentum, Vodacom has upgraded its Vision 2030 Group revenue ambition from more than R200 billion to over R300 billion.
Medium-term earnings and operating free cash flow targets have been upgraded to early-teens growth. Additionally, the board updated the dividend policy to a payout of at least 65% of headline earnings, expecting to grow the dividend per share for the 2027 financial year based on current growth trajectories.
