Vodacom Group (VOD) H1 2027 (Q&A) earnings summary

Executive summary

• Served 250 million customers, up 11.8% YoY; financial-services customers reached 108 million.

• H1 performance exceeded medium-term growth targets: pro-forma service revenue rose 13.3%, EBITDA 18.0% and operating free cash flow 34.3%.

• Safaricom became a consolidated subsidiary from 30 June 2026 after the effective holding rose to 55%, expanding geographic reach and financial-services exposure.

• HEPS rose 25.7% to 587 cents, excluding a R23.1bn Safaricom remeasurement gain; interim dividend increased 7.6% to 355 cents per share.

Financial highlights

• Revenue rose 25.6% to R102.5bn; service revenue increased 29.4% to R85.1bn, or 13.3% pro forma.

• EBITDA increased 40.0% to R42.7bn; pro-forma growth was 18.0%.

• Operating profit rose 156.9% to R52.0bn, including a one-off R23.1bn Safaricom fair value gain; net profit attributable to equity holders was R34.4bn.

• Operating free cash flow grew 68.2% to R16.9bn reported and 34.3% to R20.2bn pro forma; free cash flow was R1.0bn, reflecting working-capital absorption and Safaricom dividend timing.

• Financial-services revenue rose 99.0% to R15.9bn reported and 19.2% pro forma to R22.1bn; pro-forma LTM revenue was R43.1bn.

Outlook and guidance

• Medium-term targets remain double-digit service revenue growth and early-teens EBITDA and operating free cash flow growth; capital intensity target is 13.5%–14.5%.

• FY2027 savings target of R1.9bn is on track; South Africa margin around 37% is supported, while 38% would be a stretch.

• FY2027 total dividend is expected to grow; policy is to distribute at least 65% of headline earnings, balancing deleveraging and investment.

• Vision 2030 ambitions include revenue above R300bn, more than 275m customers, beyond-mobile services above 32% of service revenue and 130m financial-services customers.

• Working-capital absorption is expected to unwind in H2; FY2027 capex expectations include R12.0bn in South Africa and R6.5bn in Egypt.