Vodacom Group has delivered a commanding full-year performance, with Egypt and its Kenyan associate Safaricom doing much of the heavy lifting while growth in South Africa remained noticeably softer. For investors, the headline is clear: the Vodacom full-year results show a business still expanding at pace, even as its home market continues to lag behind its more dynamic African operations.
For the year ended 31 March 2026, group revenue climbed 10.1% to R167.7-billion, while service revenue rose 10.6% to R133.6-billion. Stripping out currency effects, that service revenue growth would have been even stronger at 12.9%, putting Vodacom comfortably ahead of its medium-term ambition for double-digit growth.
The telecoms giant also posted a stronger bottom line. Ebitda increased 12.8% to R62.6-billion, and the margin improved to 37.4%. Headline earnings per share jumped 22.9% to R10.53, while the board declared a final dividend of R4.05 a share. That pushed the full-year payout to R7.35, up 18.5% from the previous year.
There was another signal of operational strength in the return profile. Return on capital employed rose to 27.5%, from 23.5% a year earlier, suggesting Vodacom is extracting more value from its network and investment base. For a sector where huge capital outlays can easily weigh on returns, that will matter to shareholders watching how the company balances growth with discipline.
Egypt was the standout performer in the period, and not by a small margin. In local currency, the market delivered 36.2% service revenue growth and 44.5% Ebitda growth, making it the group’s biggest momentum engine. Vodacom said Egypt now contributes 29.7% of group Ebitda, a remarkable shift for a business that was once seen largely through the lens of its South African roots.
The company’s broader international portfolio also had a good year. Operations in Tanzania, the Democratic Republic of the Congo, Mozambique and Lesotho grew service revenue by 14.4% on a normalised basis, while rand Ebitda from those markets advanced 27.8%. That diversification is increasingly central to the group’s strategy, especially as South Africa’s mature market delivers slower growth.
By contrast, the Vodacom full-year results showed just how restrained the South African business still is. Service revenue in the home market grew only 2.1%, although the company pointed to some improvement in the final quarter, helped by a better prepaid trend, stronger demand for data and continued growth in beyond-mobile services.
Vodacom also said South African Ebitda returned to growth in the second half of the year after a one-off settlement hurt the first half. That nuance matters, because while the local business remains profitable and important, it is no longer the sole growth story driving the group forward.
Vodacom full-year results show Safaricom and Egypt driving the next phase
A major part of Vodacom’s expansion story is tied to Safaricom, the Kenyan operator in which it is acquiring an additional 20% stake. Safaricom contributed R4.6-billion to group operating profit, up 38.3%, reflecting the strength of the business across East Africa. In local currency, service revenue rose 11.5%, Ebitda grew 27.9%, and net income increased 37%.
The most eye-catching growth on that front is still coming from Ethiopia, where Safaricom is in the middle of a long rollout. The operator added 54.2% more customers in the country, taking the total to 13.6 million, while losses continued to narrow. That expansion is still early-stage, but it is already becoming a meaningful part of the broader group narrative.
Vodacom said the proposed Safaricom transaction, announced in December, remains subject to a court process in Kenya. Once finalised, the company believes it will represent a “step-change” in scale, diversification and growth. Management also said it would revisit its Vision 2030 targets once the deal closes, which signals how central this acquisition has become to the group’s long-term plan.
That scale ambition is already visible elsewhere in the numbers. Vodacom’s customer base rose by 26 million over the year to 237.3 million. That is more than double the group’s original annual Vision 2030 net-addition target of 10 million, prompting management to lift its 2030 customer ambition to 275 million.
The financial services business is also growing into a major pillar. Customers in the segment, including Safaricom on a 100% basis, climbed 17.4% to 103 million, while fintech transaction value reached US$525.6-billion, up 16.6%. In response, Vodacom has raised its 2030 financial services customer target to 130 million, from 120 million previously.
The company’s beyond mobile services — which include fintech, fixed, digital and internet of things offerings — generated R29.8-billion, or 22.3% of group service revenue. Vodacom wants that share to move closer to 30% by 2030, underlining how seriously it is treating non-traditional telecoms revenue as the next leg of growth.
Investment in the network remained substantial. Capital expenditure for the year came in at R23.6-billion, funding the rollout of 3 041 new 4G sites and 6 160 new 5G sites across the group, including Safaricom. The push into smartphones also continued, with 18.8 million handsets added during the year and smartphone penetration rising to 68.6%.
That investment drive has also extended into infrastructure assets. Vodacom completed its acquisition of a strategic stake in South African fibre business Maziv in December, a move that strengthens its position in the fixed broadband market. The company said its fibre footprint, including Safaricom’s, would reach 3.6 million homes passed once the Kenya transaction is approved.
For now, the message from management is one of confidence tempered by caution. Group CEO Shameel Joosub said the macroeconomic backdrop remains uncertain, with rising energy costs and the uncertain supply of diesel still posing operational risks. Even so, Vodacom said mitigation measures are in place as it continues to expand across Africa.
Taken together, the Vodacom full-year results paint a picture of a business that is no longer relying solely on South Africa to do the heavy lifting. Egypt is surging, Safaricom is becoming increasingly strategic, and the group’s customer, fintech and fibre ambitions are all moving higher. For shareholders and competitors alike, Vodacom is clearly positioning itself for a much broader African future.