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.

• South Africa's share of group operating profit declined from 71% to 55% over five years, with Egypt now contributing 28%.

• Financial services customers grew 4% to 88m, transacting $1.2bn daily, reinforcing fintech leadership.

• Vision 2030 aims for double-digit EBITDA growth, building on the current return on capital employed of 23.5%.

Financial highlights

• Group revenue for FY 2025 was ZAR 152.2 billion, up 1.1% year-over-year; normalized group service revenue rose 11.2%.

• 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 declared at ZAR 6.20, up 5.1%.

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

• Financial services revenue reached $2 billion with 88 million customers, expected to grow 15%-20% annually over five years.

Outlook and guidance

• FY 2026 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 (currently 21.4%).

• South Africa EBITDA and service revenue growth guided at 4%-5% for FY 2026.

• Egypt expected to deliver above 20% growth; international segment to recover to double-digit EBITDA growth.