Vodacom Group (VOD) H1 2026 Q&A earnings summary

Executive summary

• Revenue rose 10.9% year-over-year to R81.6 billion, with service revenue up 12.2% (13.6% normalised), driven by strong growth in Egypt, International, and customer expansion to 223 million.

• Net profit attributable to equity holders increased 33.1% to R9.1 billion; headline EPS up 32.3% to 467cps.

• Financial services customers grew 13.1% to 94 million, with $1.3 billion in daily mobile money transactions and financial services now 25% of profit before tax.

• Interim dividend declared at 330cps, up 15.8%, with payout policy of at least 75% of headline earnings.

• Vision 2030 strategy targets over 260 million customers and 120 million financial services customers by FY2030, focusing on digital and financial inclusion.

Financial highlights

• EBITDA grew 14.7% to R30.5 billion, margin up 1.2ppts to 37.3%, and operating profit rose 25.5% to R20.2 billion.

• Free cash flow improved to R2.7 billion, with operating free cash flow up 71% to R10.0 billion.

• Net debt/EBITDA reduced to 0.9x from 1.1x, and ROCE improved to 26.3%.

• Dividend per share increased 15.8% to 330cps.

• Capital expenditure was R9.4 billion in H1, representing 11.5% of revenue.

Outlook and guidance

• Medium-term targets reaffirmed: double-digit group service revenue and EBITDA growth, and capital expenditure at 13.0–14.5% of revenue.

• Capital expenditures expected to rise in H2, with a full-year plan of R23 billion.

• Beyond mobile services expected to contribute 30% of service revenue by 2030, with financial services aiming for 120 million customers and 15-20% CAGR.