Vodacom Group (VOD) H2 2026 (Q&A) earnings summary

Executive summary

• Achieved strong double-digit growth in EBITDA, revenue, and headline earnings per share for FY26, with robust operational performance across all regions.

• Net profit attributable to equity holders reached ZAR 20.6 billion; headline EPS up 22.9% year-over-year.

• Customer base grew 12.3% to 237 million, exceeding annual net add targets; financial services customers surpassed 100 million and now contribute 28% of profit before tax.

• Strategic acquisitions included a 30% stake in Maziv and an additional 20% stake in Safaricom, enhancing scale and diversification.

• Upgraded Vision 2030 ambitions, targeting 275 million customers and 130 million financial services customers.

Financial highlights

• Group revenue rose 10.1% to ZAR 167.7 billion (12.2% normalised); service revenue up 10.6% to ZAR 133.6 billion (12.9% normalised).

• EBITDA increased 12.8% to ZAR 62.6 billion (14.2% normalised); headline EPS grew 22.9% to ZAR 10.53.

• Dividend per share increased 18.5% to ZAR 7.35; ROCE improved by 4 percentage points to 27.5%.

• Free cash flow up 10.3% to ZAR 33.0 billion; hard currency net income grew 21.3% in euros.

• Net debt/EBITDA increased to 1.0x due to Maziv and Egypt spectrum investments.

Outlook and guidance

• Vision 2030 customer target raised to 275 million; financial services target increased to 130 million.

• Medium-term targets reaffirmed: double-digit growth in service revenue, EBITDA, and operating free cash flow.

• Beyond mobile services targeted to reach 30% of group service revenue by 2030, with financial services contributing mid-teens percentage.

• CapEx guidance narrowed to 13.5%-14.5% of revenue for medium term.

• Operating free cash flow added as a new target for management incentives.