Group revenue rose 11.0 percent year on year to R43.9 billion, with service revenue increasing by 12.7 percent. On a normalised basis, which adjusts for currency movements and one-off impacts, service revenue growth accelerated to 13.6 percent, tracking favourably against the Group’s medium-term target.
Vodacom Group has reported its revenue and service revenue growth for the quarter ended 31 December 2025, driven primarily by strong performances in Egypt, international operations, and financial services, while South Africa continued to face consumer and competitive pressures.
Group revenue rose 11.0 percent year on year to R43.9 billion, with service revenue increasing by 12.7 percent. On a normalised basis, which adjusts for currency movements and one-off impacts, service revenue growth accelerated to 13.6 percent, tracking favourably against the Group’s medium-term target.
Financial services remained a key growth engine, with revenue increasing by 24.7 percent to R4.5 billion. Across Vodacom’s mobile money platforms, including Safaricom, transaction value reached US$500.7 billion over the last twelve months, underlining the scale and importance of fintech within the Group’s strategy.
Egypt emerges as a core growth pillar
Egypt was the standout market during the quarter. Service revenue surged 39.0 percent to R9.5 billion, now contributing more than a quarter of Group service revenue. Growth was supported by strong demand for integrated connectivity and content offerings, continued momentum in Vodafone Cash, and ongoing network investment, including the roll-out of 5G services.
Financial services revenue in Egypt rose by 59.4 percent, with active customers increasing to 13.5 million. Data traffic grew by 25.1 percent, while data customers increased by 8.9 percent, supporting healthy ARPU growth in a market that is increasingly central to Vodacom’s growth narrative.
International operations maintain momentum
Vodacom’s international business delivered another strong quarter, with service revenue up 12.6 percent, or 15.4 percent on a normalised basis. Data revenue rose by 21.1 percent, contributing nearly a third of international service revenue, while M-Pesa revenue accelerated to 22.1 percent growth.
The international customer base expanded by 12.5 percent to 65.7 million, supported by new digital products and financing options. Performance in markets such as the Democratic Republic of Congo contributed to the region’s resilience and growth.
South Africa remains under pressure
In contrast, South Africa delivered modest service revenue growth of 1.4 percent to R16.4 billion. While this represents an improvement on previous quarters, growth remains subdued relative to the rest of the Group.
Vodacom cited a challenging consumer environment, promotional pricing pressures, and a strong comparative period last year as key constraints. Prepaid revenue remained under pressure, although contract revenue grew by 2.6 percent, supported by ARPU growth. Beyond mobile services, including financial services, fixed connectivity, and IoT, provided important support.
Data traffic in South Africa increased sharply by 32.3 percent, reflecting sustained network investment and strong seasonal campaigns, but volume growth has not yet translated into strong topline expansion in a price-sensitive market.
“Despite a challenging consumer environment and a strong comparative period last year in South Africa, service revenue grew by 1.4% to R16.4 billion, supported by robust growth in financial services, fixed connectivity, and IoT. The contract segment grew 2.6%, supported by ARPU growth. Prepaid revenue was under pressure as the result of a tougher consumer backdrop and promotional pricing. Data traffic surged by 32.3%, supported by sustained investment in network quality and a highly successful summer campaign driving strong engagement on smart devices. Looking ahead, we remain focused on delivering our medium-term targets, advancing financial inclusion, and executing with discipline across products and geographies. With a strong platform and a clearer line of sight to key strategic milestones, I firmly believe the Group is well positioned to capture structural growth while staying true to our purpose of connecting people to a better future. Continued execution of our strategy has the potential to create immense economic value in the markets where we operate, helping to address inequality.”
-Shameel Joosub, CEO, Vodacom Group
What the Numbers Really Say
Vodacom’s trading update reflects a Group that is performing well overall, but with a clear divergence between markets.
The headline growth is credible and largely high quality. Egypt and international operations are not only growing quickly, but also benefiting from expanding financial services ecosystems and improving network economics. These markets are increasingly carrying the Group’s growth profile.
Financial services continues to stand out as Vodacom’s most strategically important lever. Transaction volumes, customer growth, and revenue expansion all point to a business that is scaling beyond basic mobile money into a broader fintech platform. This aligns closely with the Group’s Vision 2030 ambitions and strengthens long-term defensibility.
South Africa, however, remains the weakest link. While growth is positive, it is thin and heavily reliant on non-core mobile revenues. The pressure on prepaid customers highlights ongoing affordability challenges and intense competition. Data usage growth without corresponding revenue acceleration suggests margin sensitivity remains a risk.
From a strategic perspective, the Safaricom and Maziv transactions are significant. Increasing Vodacom’s stake in Safaricom positions the Group to consolidate a highly profitable and fast-growing asset, while the Maziv fibre deal strengthens its fixed-line and open-access infrastructure ambitions in South Africa. These moves support long-term value creation, but they also raise execution and capital discipline considerations as regulatory approvals and integration progress.
Vodacom enters the remainder of the financial year with solid momentum, supported by currency stability, strong growth markets, and expanding financial services. The Group is not struggling, but it is also not uniformly strong across all regions.
The story is one of structural shift. Growth is increasingly coming from fintech, fibre, and high-growth African markets rather than traditional mobile services in South Africa. Investors and industry watchers will be looking closely at whether Vodacom can sustain this momentum while stabilising its core domestic business and executing complex strategic transactions without diluting returns.
