Vodacom Group announced its annual financial results today, reporting a 1.1% increase in total revenue to R152.2 billion for the 12 months ending March 2025. The telecommunications giant highlighted strong performances in its financial services and African markets, despite facing currency exchange challenges in some regions.
Financial Highlights
Vodacom’s financial services division stood out, with revenue growing 7.6% to R14 billion, now contributing 11.6% of the group’s total service revenue. Headline earnings per share rose 1.3% to 857 cents, reflecting a stronger second half after a slow start due to foreign exchange pressures, particularly in Ethiopia.
Regional Performance
CEO Shameel Joosub noted that while the first half was impacted by Ethiopia’s currency devaluation, the company saw a robust recovery in the latter half of the year. Key growth areas included:
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South Africa: Prepaid revenue improved significantly.
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Egypt: Delivered an impressive 49% revenue growth, driven by mobile services, content, fiber, and fintech.
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Ethiopia: Despite early setbacks, customer numbers grew by over 100%, with revenue surging 239%.
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Kenya: Achieved double-digit growth, though political unrest in the Democratic Republic of Congo (DRC) and Mozambique affected operations.
Joosub emphasized that while operations continue in conflict-affected areas like the DRC, safety concerns for staff and infrastructure disruptions have slowed growth in those regions.
Investment and Expansion Plans
Vodacom invested R20 billion in capital expenditure (capex) over the past year, with plans to inject another R20 billion in the coming financial year. A significant portion (R11.6 billion) will be allocated to South Africa, while further investments will target expansion in Egypt and Ethiopia.
Legal Battle Over Fiber Acquisition
The company also addressed its ongoing appeal against the Competition Tribunal’s decision to block its proposed acquisition of a stake in fiber operator Maziv. Joosub expressed disappointment, citing potential benefits such as:
The Department of Trade, Industry, and Competition has backed Vodacom’s appeal, reinforcing the deal’s alignment with public interest goals.
Looking Ahead
Despite regulatory and geopolitical hurdles, Vodacom remains optimistic about its Pan-African growth strategy, particularly in fintech and fiber expansion. The company’s focus on digital and financial inclusion continues to drive its long-term vision.
