South African Vodacom Group has today announced a 10.6% revenue growth to $2.2 billion (R40 billion) for the first quarter of its 2025 financial year, ending June 30, 2025. The company’s service revenue grew by 11.4% to $1.8 billion (R32.3 billion), surpassing its medium-term targets, driven by strong performances in Egypt and South Africa, alongside significant growth in financial services.
The mobile communications company’s growth was fuelled by robust contributions from its key markets. In South Africa, service revenue rose by 1.8% to R15.3 billion, bolstered by a recovering prepaid segment. It reported a 31.3% surge in data traffic, reflecting increased demand for digital services. Beyond mobile services, including financial and digital offerings, contributed R2.6 billion, accounting for 17% of South Africa’s service revenue.
According to Shameel Joosub, Vodacom Group CEO, “South Africa’s results were boosted by improved prepaid performance and price adjustments that delivered greater value to customers.”
Egypt emerged as a standout performer, with service revenue soaring 43.7% in local currency terms.
The region’s financial services revenue jumped 87%, driven by a 47.9% increase in Vodafone Cash users, reaching 8.7 million customers. Egypt now accounts for 21.9% of Vodacom’s total service revenue, with a customer base of 47.4 million, up 6.1%.
Financial services and digital inclusion drive Vodacom’s growth
Vodacom’s financial services segment saw an 8.7% increase in revenue to R3.3 billion, with a normalised growth of 16.8%. The company processed $400.2 billion in mobile money transactions over the past year, solidifying its position as Africa’s largest mobile money platform by transaction value.
The VodaPay super-app in South Africa and M-Pesa across international markets continue to drive digital and financial inclusion. In Egypt and Tanzania, these platforms have seen particularly strong adoption.
The company’s international operations, including Tanzania, the Democratic Republic of Congo (DRC), Mozambique, and Lesotho, reported a 2.3% rise in service revenue to R7.4 billion, with normalised growth at 5.7%. Tanzania led with exceptional local currency results, while DRC delivered high single-digit growth in US dollar terms.
However, Mozambique faced challenges due to post-election tensions. Data revenue in these markets grew by 15.5%, supported by a 29.6% increase in data traffic and a rise in smartphone users to 16.4 million.
Meanwhile, Vodacom invested R1.9 billion in network infrastructure during the quarter, with plans to allocate R11.5 billion for the full year to enhance customer experience and expand coverage.
“Our investments in new spectrum and 4G sites are driving data growth and improving connectivity,” Joosub said. The company also highlighted its proposed acquisition of a stake in South African fibre operator Maziv, currently under review by the Competition Tribunal, as a key initiative to bridge the digital divide.
Despite the strong results, Vodacom faced challenges from foreign exchange headwinds, particularly due to the strengthening of the South African rand. These currency fluctuations impacted reported revenue figures, though normalised growth metrics showcased the company’s underlying resilience.
In Mozambique, post-election unrest since October 2024 has hampered operations, affecting overall performance in the region.
Joosub expressed optimism about the company’s trajectory, stating, “Our strategy to diversify revenue by product and geography is bearing fruit. We remain on track to meet our medium-term financial targets.”
The company’s Vision 2030 strategy aims to accelerate service revenue growth to double digits by 2028, with a target of 30% contribution from beyond mobile services by 2030.
Vodacom’s focus on digital inclusion, through initiatives like affordable smartphone financing and rural coverage expansion, continues to support its growth ambitions. The company serves over 210 million customers across its footprint, including Safaricom, and aims to connect an additional 100 million Africans to the digital economy.
Vodacom Group’s Q1 2025 results demonstrate its ability to navigate a challenging economic landscape while delivering strong growth. With a focus on financial services, data-driven offerings, and strategic investments, the company is well-positioned to sustain its momentum.
As it pursues its Vision 2030 goals, Vodacom continues to play a pivotal role in advancing digital and financial inclusion across Africa.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
