Vodacom’s half-year profit jumps 218% to $2.33 billion after Safaricom consolidation

Vodacom Group, the Johannesburg-listed telecommunications giant led by Shameel Joosub, posted a massive surge in earnings as profit after tax surged 218 percent to $2.33 billion for the six months ended Sept. 30, 2026. The performance was boosted by strong commercial momentum across its footprint and the consolidation of Kenya’s Safaricom Plc as a subsidiary, reinforcing the group’s operational resilience despite legal hurdles in East Africa.

Earnings surge after Safaricom consolidation; dividend hiked

The telecom giant reported that its profit after tax surged 218 percent to R38.73 billion ($2.33 billion) from R12.17 billion ($733.7 million), lifted by a R23.15 billion ($1.40 billion) one-off fair value gain on remeasuring previously held interests in Safaricom. Operating profit jumped 156.9 percent to R52 billion ($3.13 billion) for the six-month period, compared with R20.24 billion ($1.22 billion) recorded in the corresponding period of 2025, while profit before tax climbed to R46.6 billion ($2.81 billion) from R16.97 billion ($1.02 billion).

Headline earnings per share (HEPS), which strips out one-off capital gains to reflect core operating performance, rose 25.7 percent to R5.87 ($0.35) from R4.67 ($0.28). In line with its policy of paying out at least 65 percent of headline earnings, the board declared a gross interim dividend of R3.55 ($0.21) per share, up 7.6 percent from the R3.30 ($0.18) paid a year earlier, representing a total distribution of R7.38 billion ($444.71 million).

Fintech and data power top-line expansion across key markets

Group revenue advanced 25.6 percent to R102.5 billion ($6.18 billion) from R81.6 billion ($4.92 billion), while service revenue climbed 29.4 percent to R85.13 billion ($5.13 billion). On a pro-forma basis—assuming Safaricom had been consolidated from April 1, 2025—service revenue expanded 13.3 percent, tracking ahead of Vodacom’s medium-term growth targets. Group EBITDA increased 40 percent to R42.66 billion ($2.57 billion), with the EBITDA margin widening to 41.6 percent from 37.3 percent.

Financial services served as a primary growth driver, with consolidated fintech revenue surging 99 percent to R15.93 billion ($960.69 million) from R8.007 billion ($482.76 million). Across its broader footprint, Egypt delivered strong results, lifting service revenue 19.8 percent to R21.12 billion ($1.27 billion)—a 36.3-percent rise in local currency—while Safaricom added R14.59 billion ($879.66 million) in second-quarter service revenue following its consolidation on June 30, 2026. In South Africa, the group recorded steady momentum, with service revenue rising 1.9 percent to R32.34 billion ($1.95 billion) on the back of recovering prepaid mobile data demand.

Regional expansion lifts asset base past $25 billion

Vodacom expanded its reach over the period, adding 26 million customers in 12 months to hit a record 250 million across Africa, alongside 108 million financial services users. The milestone followed a deal lifting its effective stake in Safaricom to a controlling 54.94 percent and the full consolidation of M-Pesa Africa Limited. While Kenya’s High Court nullified the acquisition in September 2026, the Court of Appeal in Nairobi ordered the status quo maintained pending an expedited hearing, preserving Vodacom’s registered ownership. 

The business combination expanded Vodacom’s balance sheet. Total assets expanded to R429.48 billion ($25.89 billion) as of Sept. 30, 2026, up from R276.43 billion ($16.67 billion) at the close of March 2026. Total equity rose to R150.912 billion ($9.1 billion) from R107.24 billion ($6.47 billion), while retained earnings grew to R87.13 billion ($5.25 billion) from R60.64 billion ($3.66 billion), highlighting the substantial scale added by its pan-African expansion.