Vodacom Group (VOD) H2 2025 earnings summary

Executive summary

• Achieved revenue of ZAR 152.2 billion for FY2025, up 1.1% reported and 10.9% normalized, with strong growth in Egypt and beyond mobile services.

• Net profit increased 3.3% to ZAR 19.9 billion, with HEPS up 1.3% to 857 cents per share, supported by a strong second half.

• Financial services customer base grew to 88 million, transacting $1.2 billion daily, with revenue compounding at 15%-20% expected over five years.

• Beyond mobile services now contribute 21.4% of group service revenue, targeting 30% by 2030.

• Group remains resilient, absorbing macro shocks and FX volatility, with stable leverage and robust free cash flow.

Financial highlights

• Service revenue was ZAR 120.7 billion, flat reported but up 11.2% normalized year-over-year.

• Group EBITDA was ZAR 55.5 billion, down 1.1% reported but up 7.8% normalized; EBITDA margin stable in South Africa.

• Free cash flow reached ZAR 18.2 billion, with net debt/EBITDA at 0.9x.

• Dividend per share increased 5.1% to ZAR 6.20, payout ratio at 78%.

• Operating profit rose 1.3% to ZAR 35.8 billion; net profit from associates and JVs up 24%.

Outlook and guidance

• Upgraded medium-term targets: double-digit group service revenue and EBITDA growth (normalized, constant currency) over the next three years.

• Beyond mobile services expected to deliver 15-20% CAGR to FY2030, with financial services mid-teens contribution to service revenue.

• South Africa targeting 4%-5% growth in both EBITDA and service revenue for FY2026.

• Safaricom guides for ongoing growth in Kenya and lower losses in Ethiopia for FY2026.

• Capital intensity guidance unchanged at 13%-14.5% of revenue.