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Home » Blog » Two big wins for Vodacom – BusinessTech
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Two big wins for Vodacom – BusinessTech

sokonnect
Last updated: May 11, 2026 6:32 am
sokonnect Published May 11, 2026
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Vodacom has reported a significant increase in headline earnings per share, and the group is optimistic about its recent acquisitions of large stakes in Maziv and Safaricom.

In the financial year ended 31 March 2026, Vodacom saw its headline earnings per share rise by 22.9% to 1,053 cents per share.

The group’s final dividend stood at 405 cents per share, up 20.9%, bringing its total dividend for the year to 735 cents per share, up 18.5%.

“With headline earnings and free cash each growing by more than 20%, the benefits of our revenue and geographic diversification are apparent, even amid a complex and dynamic macroeconomic environment,” said Vodacom CEO Shameel Joosub.

Joosub added that the group has made progress on delivering on its strategy over the year, marked by two milestone transactions that will add to its long-term growth profile.

In December, the group announced an agreement to acquire an additional 20% stake in Safaricom from the Kenyan government.

“This transformational transaction reinforces our commitment to the high-growth East African markets of Kenya and Ethiopia. The closing of this transaction is subject to an ongoing court process in Kenya.”

The group also finalised the acquisition of a strategic stake in Maziv, the fibre group that houses Vumatel.

Joosub said that this will allow the group to accelerate its deployment and expand access to high-quality connectivity, especially in historically underserved communities.

Joosub said that the group is heavily focused on sustainable shareholder value, with its return on capital employed (ROCE) increasing to 27.5% (FY25: 23.5%).

The group added 26.0 million customers across its operations, which was over double its annual Vision 2030 target of 10 million, bringing its total customer base to 237.3 million across eight markets.

The group is now aiming to reach 275 million customers as part of its Vision 2030 goals, which Joosub said reflects the group’s confidence that the growth opportunity remains far from fully realised.

Group service revenue grew by 10.6% to R133.6 billion, or 12.9% on a normalised basis, which Joosub said was comfortably ahead of its double-digit medium‑term target.

The CEO said that the group’s results were also supported by strong performance in Egypt, Tanzania, the Democratic Republic of Congo and Lesotho, along with resilience in South Africa and Mozambique.

“Our diversified portfolio continues to demonstrate resilience across geographies,” said the CEO.

“Egypt delivered an impressive performance, with local‑currency service revenue and EBITDA growth of 36.2% and 44.5% respectively, and a contribution of 29.7% to Group EBITDA.”

Financials 2026 2025 % Change (Reported) % Change (Normalised*)
Revenue 167 652 152 227 10.1 12.2
Service revenue 133 561 120 734 10.6 12.9
Net profit from associates & JVs 4 259 2 724 56.4 73.2
Operating profit 44 108 35 791 23.2 21.8
Net profit (equity holders) 20 647 16 598 24.4 –
Net debt to EBITDA (times) 1.0 0.9 0.1x –
Earnings per share (cents) 1 069 859 24.4 –
Headline earnings per share (cents) 1 053 857 22.9 –
Total dividend per share (cents) 735 620 18.5 –

South Africa is stable

The international business delivered service revenue growth of 14.4% on a normalised basis, with double‑digit local‑currency growth across Tanzania, DRC and Lesotho.

Joosub said that South Africa delivered a stable performance, with service revenue growing 2.1%, supported by an improving prepaid trend in Q4, strong data demand and continued growth in beyond mobile services.

“South Africa EBITDA returned to growth in the second half of the financial year, after being impacted by a one-off settlement agreement in the first half,” said Joosub.

During the year, the group finalised the Please Call Me Matter with Nkosana Kenneth Makate, in which Makate received an estimated amount between R350 million and R750 million.

Safaricom saw strong growth over the period, contributing R4.6 billion to group operating profit, an increase of 38.3% despite the extra 20% stake not being included in 2026.

“This result was underpinned by sustained operational excellence in Kenya and improving scale in Ethiopia,” said Joosub.

Looking ahead, Joosub said that, from the group’s macroeconomic perspective, uncertainty is expected to persist.

That said, the CEO noted that the group’s fundamentals remain strong, as do its risk management processes.

“The Group’s resilience through a challenging macroeconomic period between FY2022 and FY2025 bears testament to these qualities,” he said.

“As energy costs continue to rise and diesel supply remains uncertain, we have mitigation measures in place and are actively managing these risks to minimise any potential disruptions.”

The CEO said that the completion of the Safaricom transaction and subsequent consolidation would represent a step‑change in Vodacom’s scale, diversification, and growth profile.

“We are excited by this opportunity and, when the transaction completes, we intend to update our Vision 2030 ambitions to reflect the enhanced portfolio,” said Joosub.

TAGGED:BigBusinessTechVodacomwins
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