Vodacom Group has announced a robust revenue increase for the first quarter, with group revenue rising by 10.6% to R40 billion. This growth was largely driven by a strong performance in its contract segment in South Africa and significant contributions from Egypt.
For the quarter ending in June, normalised revenue growth reached 12.7%, while service revenue saw an impressive increase of 13.8%, totalling R32.26 billion. South Africa’s service revenue grew by 3%, bolstered by the contract segment, while Egypt experienced a remarkable 43.8% growth in service revenue in local currency.
Additionally, Vodacom’s international business saw service revenue increase by 9.7%, with normalised growth accelerating to 12.4%. The group’s financial services revenue also performed well, growing by 18.1% to R3.9 billion, driven by strong insurance growth in South Africa and a 44.3% increase in Egypt.
Vodacom’s CEO expressed confidence in the company’s first-quarter performance, which supports the upgraded financial targets announced in May. The encouraging trends include significant revenue growth in rand terms, improved performance from the international business, and a solid showing in both the contract segment and Egypt.
Financial services remain a strategic priority for Vodacom, making up the largest part of its beyond-mobile services. With the inclusion of Safaricom, Vodacom processed $460 billion in mobile wallet transactions annually, reflecting a 14.9% increase over the past year and solidifying its fintech leadership in Africa.
Vodacom is also optimistic about its acquisition of a 30% stake in Maziv, which the Competition Commission will no longer oppose. If approved, this deal is expected to enhance fibre network expansion and contribute to job creation in South Africa.
Looking ahead, Vodacom is committed to achieving its Vision 2030 targets, which aim to grow its customer base to 260 million and its financial services customer base to 120 million. Key strategies include enhancing mobile and fixed connectivity, scaling handset financing, and expanding digital and financial services across its markets.