Vodacom Group (VOD) H1 2027 earnings summary

Executive summary

• Pro forma service revenue grew 13.3% and EBITDA 18.0%, exceeding medium-term targets; the customer base reached 250m, up 11.8%.

• Safaricom became a 55%-owned subsidiary from 30 June 2026, expanding scale and financial-services exposure; its acquisition remains under appeal.

• Beyond-mobile services contributed 27.4% of service revenue; 61% of LTM revenue was generated outside South Africa.

Financial highlights

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

• EBITDA rose 40.0% to R42.7bn, or 18.0% pro forma; operating profit reached R52.0bn, up 156.9%, including a R23.1bn Safaricom remeasurement gain.

• Net profit attributable to equity holders was R34.4bn; HEPS, excluding the one-off Safaricom gain, rose 25.7% to 587c.

• Operating free cash flow increased 68.2% to R16.9bn, or 34.3% pro forma; free cash flow was R1.0bn, affected by working capital and Safaricom dividend timing.

• Financial-services revenue was R15.9bn reported and R22.1bn pro forma, up 19.2%.

Outlook and guidance

• Medium-term targets remain double-digit service revenue growth, early-teens EBITDA and operating free cash flow growth, and capital intensity of 13.5%–14.5%; H1 pro forma growth exceeded targets.

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

• H2 priorities include sustaining commercial momentum, scaling financial services and fixed connectivity, improving operating leverage, growing free cash flow and deleveraging.

• Working-capital absorption is expected to unwind in H2, supporting improved free cash flow; capital intensity is expected to return to its target range.

• Safaricom Ethiopia is progressing toward EBITDA break-even during FY2027; FY2027 CapEx expectations include R12.0bn in South Africa and EGP20bn in Egypt.