Vodacom Group (VOD) H2 2025 Q&A earnings summary

Executive summary

• Vision 2025 strategy concluded with significant progress in geographic and product diversification, ESG leadership, and financial services expansion.

• Achieved revenue of R152.2bn, up 1.1% reported and 10.9% normalised year-over-year, with strong growth in Egypt and beyond mobile services.

• Net profit rose 3.3% to R19.9bn, with headline earnings per share (HEPS) up 1.3% to 857cps, supported by a strong second half.

• Group has shifted from South Africa-centric profits to a more balanced contribution, with Egypt now at 28% of operating profit.

• Vision 2030 aims for double-digit EBITDA growth, building on the momentum of the past five years.

Financial highlights

• Group revenue for FY2025 was ZAR 152.2 billion, up 1.1% year-over-year, despite FX headwinds.

• Normalized group service revenue rose 11.2%, exceeding high single-digit growth targets.

• Group EBITDA decreased 1.1% to ZAR 55.5 billion, but normalized EBITDA grew 7.8%.

• Headline EPS increased 1.3% to ZAR 857 per share; final dividend of ZAR 6.20, up 5.1%.

• Free cash flow reached R18.2bn, with net debt/EBITDA stable at 0.9x.

Outlook and guidance

• FY2026 outlook anticipates strong earnings and dividend growth, especially from Vodacom and Safaricom.

• Targeting double-digit normalised growth in group service revenue and EBITDA over the next three years.

• Beyond mobile services targeted to reach 30% of group service revenue by 2030, with 15-20% CAGR expected.

• South Africa EBITDA and service revenue growth guided at 4-5% for FY2026.

• Egypt expected to deliver above 20% growth, with Safaricom Group EBIT forecast to grow over 46%.