Vodacom Group has reported solid financial results for the third quarter, demonstrating resilience amid currency headwinds and a stronger rand. Group revenue increased by 1.6% to R39.5 billion, while service revenue grew by an impressive 11.6% on a normalised basis, surpassing the company’s medium-term targets.
Key Financial and Operational Highlights
- South Africa: Service revenue rose by 3.2%, supported by strong prepaid market growth and a 40.6% increase in data traffic.
- Egypt: A standout performer, Egypt’s service revenue surged by 44.3% in local currency, with financial services revenue climbing 77.7%.
- International Business: Service revenue increased by 1.4% (7.0% on a normalised basis), despite challenges in Mozambique due to post-election tensions.
- Financial Services Growth: Vodacom’s financial services division posted a 5.7% increase in revenue (17.2% normalised), reaching R3.6 billion.
- Mobile Money Expansion: The Group processed an impressive US$437.7 billion in mobile money transactions over the past 12 months, solidifying its position as Africa’s leading mobile money platform.
CEO Commentary and Strategic Outlook
Vodacom Group CEO, Shameel Joosub, remains optimistic about the company’s performance, reinforcing confidence in sustained growth for the second half of the financial year.
“Despite currency fluctuations impacting several of our markets, the focused execution of our strategy has resulted in a resilient operational response. The recent stability in currency markets, particularly in Egypt, is a positive indicator for the year ahead,” Joosub stated.
Vodacom’s South African operations showed an upward trajectory, driven by seasonal campaigns, a more favourable consumer environment in prepaid, and continued investment in network infrastructure. The company invested R3.2 billion in the quarter and expects total capital expenditure for the year to reach between R11.0 billion and R11.2 billion to further enhance customer experience.
Beyond South Africa, Vodacom’s international businesses continue to drive strong results. In Egypt, service revenue grew significantly, reaching R6.8 billion, with the customer base expanding by 6.2% to 50.7 million. Tanzania and the Democratic Republic of Congo (DRC) also contributed significantly to overall international service revenue growth, with data traffic in the region up by 31.1%.
Aligned with its mission to connect people for a better future, Vodacom has undertaken key initiatives to expand connectivity and financial services:
Partnering with Orange in the Democratic Republic of Congo (DRC) to extend rural network coverage.
Launching M-Wekeza in Tanzania, an investment platform aimed at increasing financial accessibility.
Introducing a cloud-based handset in South Africa to lower the cost of smartphone access.
Vodacom now serves over 210 million customers and is aggressively pursuing its goal of connecting the next 100 million Africans to the digital economy. Ethiopia, a key growth market, has shown remarkable progress, with its customer base growing by 63.6% to 7.1 million.
Vodacom’s “beyond mobile” services, previously labeled as “new services,” continue to gain traction. This segment, which includes digital and financial services, fixed connectivity, and IoT, now contributes 21.4% to overall Group service revenue. In Q3, beyond mobile generated R6.6 billion in revenue, marking an 11.3% increase. The company’s financial services division remains a focal point, with mobile money transaction values increasing by 19.1% in US dollars, processing an average of US$1.2 billion per day.
Looking ahead, Vodacom remains committed to increasing its impact across key markets. The company has appealed the South African Competition Tribunal’s decision regarding its proposed acquisition of a joint control stake in fibre operator Maziv. Vodacom believes that the transaction will expand fibre access, boost economic development, and bridge South Africa’s digital divide.
“We will continue driving access to smartphones, financial services, healthcare, and education to every person across our markets. The execution of our strategy has the potential to create significant economic value and contribute to reducing inequality,” Joosub concluded.
With ongoing network investments, strategic partnerships, and a growing footprint in digital and financial services, Vodacom remains well-positioned for long-term growth in the evolving telecommunications landscape.
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