Vodacom Group (5VD) Q2 2026 Earnings Report

The earnings call reflects a generally positive sentiment driven by strong growth in revenue, customer base, and international operations, particularly in Egypt and through financial services. However, challenges remain in the South African market, especially in the prepaid segment, and were further compounded by a one-off settlement cost impacting EBITDA.

During the call, Mohamed Shameel Joosub highlighted Vodacom's strong performance for the six months ending September 30, 2025, with revenue reaching ZAR 81.6 billion, a 10.9% increase, and customer growth of 8.6% to 223 million. The company surpassed its double-digit EBITDA growth target, with significant contributions from financial services, which grew 13.1% to 94 million customers and now account for 25% of profit before tax. Egypt notably improved, contributing ZAR 7.8 billion to operating profit, a 66.5% increase, while Safaricom's contribution rose 65.3% to ZAR 2.1 billion, supported by a 57.3% EBITDA margin in Kenya. International operations doubled operating profit to ZAR 2.1 billion, with EBITDA margins recovering to 33.9%. Despite challenges in South Africa, particularly in prepaid services, Vodacom expects positive EBITDA growth in the second half. The company also emphasized its Vision 2030 strategy, targeting 260 million customers and 120 million financial service customers. The Board declared a dividend of ZAR 3.30 per share, reflecting a 15.8% increase.