Vodacom Group (5VD0) Q2 2026 Earnings Report

The earnings call presented a strong overall performance with significant growth in revenue, customer base, and financial services. However, challenges in South Africa's prepaid market and voice revenue decline slightly tempered the positive outlook.

During the call, Mohamed Shameel Joosub highlighted Vodacom's strong financial performance in the first half of fiscal year 2026, with revenue reaching ZAR 81.6 billion, a 10.9% increase, and double-digit EBITDA growth exceeding targets. The company reported an impressive 8.6% rise in customer numbers to 223 million, moving closer to its Vision 2030 target of 260 million. Financial services customers also grew by 13.1% to 94 million, contributing 25% to profit before tax. Egypt's operating profit surged by 66.5% to ZAR 7.8 billion, driven by a stabilized macroeconomic environment. Safaricom's operating profit rose by 65.3%, with EBITDA margins in Kenya reaching 57.3%. International business segments doubled their operating profit to ZAR 2.1 billion, benefiting from service revenue growth in the DRC, Lesotho, and Tanzania. Despite challenges, South Africa's operating profit stood at ZAR 8.8 billion, with a focus on balancing price discipline and competitive responses in the prepaid segment. The company declared a dividend of ZAR 3.30 per share, a 15.8% increase, while maintaining a healthy return on capital employed at 26.3%. Looking ahead, Vodacom anticipates strong EBITDA growth in Egypt and international markets, with planned capital expenditures of ZAR 23 billion for the fiscal year.