Vodacom has released its trading update for the quarter ending 31 December 2025, revealing an impressive 11% increase in group revenue, reaching US$2.2 billion.
The group’s service revenue grew 12.7%, aligning well with the company’s medium-term goals, driven mainly by strong performance in Egypt, where service revenue surged 39% to US$588 million.
In Egypt, the financial services sector showed a remarkable 59.4% increase. Vodacom’s acquisition of a 55% stake in Vodafone Egypt in December 2022, valued at US$2.9 billion, has played a pivotal role in these results.
The international segment also contributed positively, increasing service revenue by 12.6%. Meanwhile, South Africa experienced modest growth, with service revenue rising by 1.4%, supported by Vodacom’s strategy beyond traditional mobile offerings.
Vodacom’s financial services revenue climbed by 24.7% to US$279 million, with the company reporting transactions amounting to US$500.7 billion through its mobile money platforms over the past year.
CEO Shameel Joosub highlighted two critical strategic achievements during the quarter that reinforce Vodacom’s long-term growth outlook. Firstly, in December, the company announced its intention to acquire an additional 20% stake in Safaricom, reaffirming its dedication to expanding in the high-potential East African markets of Kenya and Ethiopia. Additionally, the acquisition of a strategic stake in the South African fibre business Maziv received final approval from ICASA in November, enabling Vodacom to enhance fibre deployment and improve connectivity in underserved areas.
Joosub noted that the quarter benefited from solid growth in Egypt and its international operations, including a strong performance in the Democratic Republic of the Congo (DRC).
The CEO indicated that growth in South Africa was driven by financial services, fixed connectivity, and the Internet of Things (IoT), with the contract segment growing by 2.6% due to improvements in average revenue per user (ARPU). However, prepaid revenue faced challenges due to a more demanding market environment and competitive pricing strategies.
Data traffic grew 32.3%, aided by ongoing investments in network infrastructure and successful summer campaigns that encouraged the use of smart devices.
With Safaricom’s inclusion, Vodacom surpassed 100 million financial services customers during the quarter. Joosub stated, “We continue to invest in quality and resilience, modernising networks, scaling 4G and 5G capabilities, and expanding fibre to bridge the digital divide.”
The international business reported excellent results, with service revenue rising by 12.6% to R8.8 billion, driven by effective commercial strategies and network modernisation. Data revenue grew 21.1%, accounting for 31.2% of international service revenue, while M-Pesa revenue grew 22.1%, buoyed by double-digit growth across all markets.
The customer base expanded by 12.5% to 65.7 million, reflecting the success of innovative financing options and new product offerings, such as communal savings and fuel loans. Joosub pointed out that Egypt stands out, with service revenue now accounting for 27.5% of the Group’s total service revenue for the quarter, driven by strong commercial momentum and robust integration of connectivity and content offerings.
Furthermore, data traffic in Egypt increased by 25.1%, with data customers rising by 8.9% to 33.9 million, supported by consistent network investment and the rollout of 5G services that contributed to healthy ARPU growth.
Looking to the future, Joosub emphasised Vodacom’s commitment to achieving its medium-term objectives, enhancing financial inclusion, and executing rigorous strategies across its products and geographical markets. He concluded, “The continued execution of our strategy has the potential to generate tremendous economic value in the regions where we operate, aiding in addressing inequality.”
