Vodacom Group (VOD) H2 2026 (Q&A) earnings summary

Executive summary

• Achieved strong double-digit growth in EBITDA, revenue, and headline earnings per share for FY26, with robust operational performance across all regions.

• Net profit attributable to equity holders reached ZAR 20.6 billion; headline EPS up 22.9% year-over-year.

• Customer base grew 12.3% to 237 million, exceeding annual net add targets; financial services customers surpassed 100 million and now represent 28% of profit before tax.

• Full-year dividend increased 18.5% to ZAR 7.35 per share; return on capital employed rose to 27.5%.

• Strategic acquisitions included a 30% stake in Maziv and an additional 20% stake in Safaricom, enhancing scale and diversification.

Financial highlights

• Group revenue rose 10.1% to R167.7bn (12.2% normalised); service revenue up 10.6% to R133.6bn (12.9% normalised).

• EBITDA increased 12.8% to R62.6bn (14.2% normalised); headline EPS grew 22.9% to ZAR 10.53.

• Dividend per share up 18.5% to ZAR 7.35; ROCE improved by 4 percentage points to 27.5%.

• Free cash flow up 10.3% to R33.0bn; hard currency net income grew 21.3% in euros year-over-year.

Outlook and guidance

• Vision 2030 customer target raised to 275 million; financial services target increased to 130 million.

• Medium-term targets reaffirmed: double-digit growth in service revenue, EBITDA, and operating free cash flow.

• Beyond mobile services targeted to reach 30% of group service revenue by 2030, with financial services contributing mid-teens percentage.

• Group CapEx target narrowed to 13.5%-14.5% for medium-term planning.

• South Africa expected to return to prepaid revenue growth in Q1 FY 2027.