by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – VODACOM has reported a solid start to its 2027 financial year, underpinned by the completion of its landmark acquisition of a controlling stake in Safaricom and strong growth in financial services across its African markets.
For the quarter ended 30 June 2026, the telecommunications group increased revenue by 5.9% to R42.4 billion, while service revenue rose 6.3% to R34.3 billion.
On a normalised basis, excluding currency effects, service revenue grew 12.6%, reflecting strong underlying momentum despite the stronger rand.
The acquisition of a 55% stake in Safaricom, effective from 30 June, marks a significant milestone in Vodacom’s Vision 2030 strategy.
The transaction expands the group’s geographic footprint, strengthens its exposure to faster-growing markets and increases the contribution of financial services to more than 22% of group service revenue.
Chief executive Shameel Joosub described the deal as a defining moment for the company, saying it significantly enhances Vodacom’s scale, diversification and long-term growth prospects.
As a result, the group has upgraded its medium-term earnings before interest, tax, depreciation and amortisation (EBITDA) and operating free cash flow growth targets to the early teens.
It has also raised its Vision 2030 revenue ambition from more than R200 billion to more than R300 billion.
Egypt delivered the strongest operational performance during the quarter, with service revenue increasing 32.8% in local currency, supported by continued investment in spectrum and network infrastructure.
South Africa recorded 2% service revenue growth, aided by an improved performance in the prepaid segment, while the international business achieved normalised service revenue growth of 14%.
Financial services remained a major growth driver, with revenue climbing 17.8% to R4.5 billion.
Including Safaricom, Vodacom’s mobile money platforms processed transactions worth US$547.9 billion over the past 12 months, reinforcing the group’s position as one of Africa’s leading fintech operators.
The board has also revised its dividend policy, committing to distribute at least 65% of headline earnings, reflecting confidence in the group’s enhanced growth outlook.
With the Safaricom transaction complete, Vodacom says its focus will shift to executing its Vision 2030 strategy and unlocking greater long-term value across its diversified African portfolio.
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– CAJ News