Vodacom Group Limited has upgraded its long-term revenue targets and adjusted its capital allocation framework, following the completion of its acquisition of a controlling stake in Safaricom. In its trading update for the quarter ended 30 June 2026, the group confirmed that the Safaricom transaction became effective on 30 June 2026, increasing Vodacom’s shareholding from 35-55%. The operational shift prompted management to raise its Vision 2030 group revenue target from more than R200 billion to over R300 billion, while upgrading its medium-term Ebitda (earnings before interest, tax, depreciation and amortisation) and operating free cash-flow targets from double-digit to early-teens growth.
Financial services and regional performance Group revenue for the quarter rose 5.9% (11.4% on a normalised basis) to R42.4 billion, despite foreign exchange translation headwinds resulting from a stronger rand. Total service revenue grew 6.3% to R34.3 billion, accelerating to 12.6% on a normalised basis. Financial services remained a primary growth engine, with revenue increasing 17.8% (27.0% normalised) to R4.5 billion.
Including Safaricom, the platform processed $547.9 billion in mobile wallet transaction value over the trailing 12 months, reflecting a 19.1% increase. The Safaricom consolidation expands the contribution of financial services from 13% to over 22% of group service revenue. Furthermore, broader “beyond mobile” services contributed R7.8 billion, representing 22.8% of group service revenue.
Regional operating highlights include: Egypt: Delivered service revenue growth of 32.8% in local currency, supported by a 73.0% surge in local financial services revenue. South Africa: Service revenue increased 2.0% to R16.1 billion, supported by an improved prepaid segment performance. International business: Reported service revenue increased 4.1% in rand (14.0% normalised), led by strong activity in Tanzania, Congo and Lesotho.
Portfolio realignment and dividend policy update Reflecting on the milestone quarter, Shameel Joosub, Vodacom Group CEO, said: “This quarter marked a defining moment for Vodacom with the completion of our acquisition of a controlling stake in Safaricom, increasing our shareholding from 35% to 55%, effective 30 June. “This strategically important transaction represents a major milestone in our Vision 2030 journey, significantly enhancing the gr…
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