Vodacom’s third-quarter performance was driven by rapid growth in Egypt and steady expansion across its international operations, helping the group deliver double-digit revenue gains despite subdued conditions in its home market. Group revenue rose 11% to R43.9bn for the quarter ended December, or 11.7% on a normalised basis, which strips out currency and once-off effects. Service revenue increased by 12.7%, accelerating to 13.6% on a comparable basis, underlining the growing contribution from higher-growth markets outside South Africa.
South African service revenue grew by 1.4%, reflecting a tougher trading environment and a strong base from the prior year. In contrast, Egypt recorded a 39% rise in service revenue to R9.5bn, supported by sharp growth in data usage and digital services. Revenue from financial services in Egypt increased by 59.4%, highlighting the scale of demand for mobile payments and lending products in a market with low traditional banking penetration. International business service revenue rose by 12.6%, with normalised growth accelerating to 15.4%, supported by solid performances in countries such as the Democratic Republic of Congo.
Financial services continued to be a key growth pillar for the group. Revenue from this segment increased by 24.7% to R4.5bn, while transaction volumes across mobile money platforms, including Safaricom’s M-Pesa, reached $500.7bn over the past 12 months. The group surpassed 100 million financial services customers during the quarter, reflecting rising adoption of digital payments, remittances and savings products across Africa. Mobile money usage in sub-Saharan Africa continues to expand at double-digit rates, driven by smartphone uptake and the need for low-cost financial access, trends that are reinforcing telecom operators’ shift towards platform-based revenues.
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Vodacom also used the quarter to strengthen its long-term growth profile through targeted investments. It agreed to acquire an additional 20% stake in Safaricom for $2.1bn, deepening its exposure to high-growth East African markets such as Kenya and Ethiopia, where data consumption and financial services adoption remain well above regional averages. In South Africa, regulatory approval in November for its strategic stake in fibre operator Maziv has positioned the group to accelerate fibre roll-out and extend high-speed connectivity to areas with limited fixed-line infrastructure.
Management attributed the results to a combination of geographic diversification and the scaling of digital services, particularly in markets benefiting from greater macroeconomic and currency stability. While South Africa continues to deliver only modest growth, the performance in Egypt and other African operations has shifted the centre of gravity of the group’s earnings profile. With capital increasingly directed towards fibre, data and financial services, the group is seeking to reduce its reliance on traditional voice revenue and build more resilient income streams.