Vodacom records $10 billion revenue for year ended March 2026

Vodacom Group declared on Monday that its revenue jumped by 10.1% to $10.18 billion (R167.7 billion) for the year ended 31 March 2026. 

In its financial earnings, the company, majority owned by Britain’s ‌Vodafone, saw its headline earnings and free cash grow by over 20% each. This reveals the group’s strategic operation across its eight African markets despite a macroeconomic environment filled with headwinds. 

The group described the result as a “strong” start to its Vision 2030 strategy, with major achievements particularly in its subscriber base. 

The group saw its total customers increase by 26 million (12.3%) to 237.3 million, more than double its annual Vision 2030 target of 10 million customers. The performance has now seen the company increase its 2030 customer ambition to 275 million. 

Group Chief Executive Officer, Shameel Joosub, recognised what the result meant for the group’s onset of its 2030 vision. For Vodacom, delivering a significant result in the first year of its new ambition cements a statement of confidence towards achieving the set targets. 

“This was a year that reflected both continuity and acceleration: staying true to the strengths that have served us well, while confidently stepping into the next phase of our growth journey,” he said. 

Vodacom service revenue, comprising data, voice and other revenues across its markets, grew by 10.6% to $8.12 billion (R133.6 billion), which also surpassed the company’s target for the medium term run. 

The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 12.8% to $3.81 billion (R62.6 billion), representing 14.2% normalised growth, with EBITDA margins expanding to 37.4%.

18.8 million smartphones rollout

Leading its investments, in terms of its $1.44 billion (R23.6 billion) Capital Expenditure (CAPEX) during the year, is the deployment of about 18.8 million smartphones. The initiative forms part of a smartphone penetration project, which is now at 68.6%.

Interestingly, the achievement was fuelled by Vodacom’s certified pre-owned, refurbished smartphones. Under its “Good As New” program, it focuses primarily on Apple iPhones, with models like iPhone 11, 13, and 14, and selected Samsung, Huawei, and Vivo devices. As of April, Vodacom has sold over 61,000 smartphones in South Africa.

There were also additions of 3,041 and 6,160 new sites for 4G and 5G service upgrades, respectively, across the group’s African market. While improving smartphone affordability, Vodacom is also ensuring users have access to quality network performance.

In addition, the initiative supports digital inclusion and connecting more Africans to the world. 

Also Read: Vodacom sells 51,000 refurbished phones as South Africa battles e-waste crisis.

Subsidiary performance

Across its markets, Vodacom Egypt and Safaricom, its partly-owned Kenyan subsidiary, recorded significant results during the financial year. 

Specifically, the Egyptian market contributed 29.7% to the group’s EBITDA, after recording a local-currency service revenue and EBITDA growth of 36.2% and 44.5%, respectively. 

Safaricom recorded a service revenue growth of 11.5%, EBITDA growth of 27.9%, and net income up 37.0%. With this, the subsidiary contributed $279.5 million (R4.6 billion) to group operating profit, an increase of 38.3% year-on-year. The result was bolstered by operational strength in Kenya and improving scale in Ethiopia.

In Tanzania, DRC and Lesotho, service revenue saw a combined 14.4% growth on a normalised basis. It was also accompanied by a 27.8% rise in EBITDA during the period.

In South Africa, its anchor market, the group saw a service revenue growth of 2.1%, largely fueled by prepaid services and data demand. The market only returned to growth in the second half of the year, having been impacted by a one-off settlement agreement in the first half of the year.

With many telcos, like MTN South Africa, experiencing tough macroeconomic conditions in the country, pressures are mounting for a response in the current financial year. 

Fintech

Operating Africa’s largest mobile money platform by transaction value, its core products, M-Pesa and the VodaPay super-app, processed $525.6 billion in transactions during the year. The 16.6% jump has further scaled the financial services.

The group is also using its Fintech product to bridge the gender gap. In Tanzania, its savings product, M-Koba, is scaling rapidly with 60% of deposits transacted by women members, while in rural Egypt, the group is training one million women to establish and run their own digital businesses.

Major deals

In December, Vodacom finalised the acquisition of a strategic stake in Maziv, a South African fibre business. The deal is set to unlock the opportunity to accelerate fibre deployment and expand access to high-quality connectivity, particularly in historically underserved communities. 

Also, through Vodafone Kenya, the group is in the process of acquiring a majority stake in Safaricom by acquiring 15% of the Government of Kenya’s issued shares, valued at $1.6 billion (KSh 204.3 billion). The proposed deal will ramp up Vodacom’s stake in the telecoms company from 40% to 55%. 

The two milestones are expected to strengthen Vodacom and propel its operations beyond mobile positioning. When the Safaricom stake addition is completed, Safaricom’s fibre footprints are expected to cover 3.6 million homes. 

For the group, expanding its base with associated investments helps strengthen its connectivity network and long‑term growth potential.

Forecast 

While market fluctuations are expected to yield uncertainties, Vodacom said the earnings projections remain strong with risk management measures in place. While energy costs continue to rise and diesel supply remains uncertain, the group said mitigation measures are in place to minimise any potential disruptions.

“Our focus remains on disciplined execution to strengthen returns, while continuing to work constructively with governments and partners to support healthy operating environments and expand access to connectivity and digital services,” it said.

The completion of the increased Safaricom stake acquisition is expected to propel the group’s position, brand and growth profile, especially in its Vision 2030 ambition.