Vodacom revenue rises 25.6% as African operations outperform domestic market

Vodacom has reported that its international markets are now generating faster growth than its South African home base, according to TechCabal. The pan-African technology group recorded revenue of R102.5 billion, equivalent to $6.2 billion, for the six months ended 30 September 2026. This represents a 25.6% year-on-year increase, a figure that TechCabal notes was boosted by the consolidation of Safaricom, East Africa’s largest telecommunications company.

The acquisition of a controlling 55% stake in Safaricom has become central to Vodacom’s strategy to diversify beyond traditional mobile connectivity. By consolidating Safaricom as a subsidiary from 30 June, Vodacom integrated M-Pesa, the mobile money platform, into its financial services ecosystem. TechCabal reports that Egypt saw local currency service revenue rise by 36.3%, while Safaricom’s service revenue increased by 13.1%. Tanzania, the Democratic Republic of Congo, and Lesotho also posted strong results, contributing to a 13.7% rise in normalised service revenue for the group’s international business.

In South Africa, the market is described as relatively mature, making growth harder to extract. However, Vodacom’s prepaid segment resumed expansion, driven by increased data usage. Cost controls improved the EBITDA margin to 37.4%, which TechCabal identifies as the highest level in several years. The group added 26 million customers over the past 12 months, bringing its total customer base across Africa to 250 million.

Financial services are now a significant portion of the group’s revenue. TechCabal states that financial services, fixed connectivity, and digital services make up 27.4% of Vodacom’s service revenue. Following the Safaricom deal, the company lifted its 2030 goal for these sectors from 30% to over 32%. Pro-forma financial services revenue for the last 12 months reached R43.1 billion, serving 108 million customers who processed over $575.5 billion in transactions.

Vodacom’s chief executive officer, Shameel Joosub, stated that the company achieved one of its best six-month results. He noted that the firm surpassed its medium-term targets for service revenue, EBITDA, and operating free cash flow. The interim results also included a dividend of 355 cents per share, a 7.6% increase, backed by a 25.7% rise in headline earnings per share.