Vodacom Group reported double-digit revenue growth for the quarter ended 31 December, underpinned by strong performance in Egypt, international markets and financial services.
In a trading update published today, the group says revenue increased by 11% to R43.9 billion, while service revenue rose 12.7%, or 13.6% on a normalised basis, broadly in line with its medium-term growth targets.
South Africa, which remains Vodacom’s largest market, recorded modest service revenue growth of 1.4%, reflecting continued pressure in the core mobile business. The group says growth in South Africa was supported by “beyond mobile” services, including digital and enterprise offerings.
Egypt emerged as the standout performer, with service revenue surging 39% to R9.5 billion. Vodacom says financial services revenue in the market climbed 59.4%, highlighting the rapid expansion of mobile money and digital payments.
Shameel Joosub, Vodacom Group CEO, says during the third quarter, the group made significant strategic progress, marked by two milestones that strengthen the company’s long-term growth profile and accelerate inclusive connectivity across its footprint.
“In December, we announced an agreement to acquire an additional 20% stake in Safaricom, reinforcing our commitment to the high growth East African markets of Kenya and Ethiopia. In November, our acquisition of a strategic stake in South African fibre business Maziv received ICASA’s final approval, unlocking the opportunity to accelerate fibre deployment and expand access to high-quality connectivity, particularly in historically underserved communities,” says Joosub.
“From a financial performance perspective, the ideal start that we delivered in the first half of the year to our bold Vision 2030 ambitions continued into the third quarter. This encouraging momentum underscores our confidence in the group’s medium-term growth trajectory in an operating environment shaped by macro-economic and currency stability, which should bode well for the group’s performance for the full financial year.”
Strong group performance
He notes that the quarter benefited from sustained growth in Egypt and international business – including a strong performance in DRC – while South Africa delivered modest but satisfactory revenue growth against a particularly strong comparative quarter last year.
“Including Safaricom, we passed the 100 million financial services customers mark during the quarter, illustrating our purpose-led impact on people and economies across our markets. We continue to invest in quality and resilience, modernising networks, scaling 4G and 5G where appropriate, and expanding fibre to bridge the digital divide.
“At a group level, we delivered a strong performance across our diversified portfolio and beyond mobile services, with group revenue increasing 11% to R43.9 billion and group service revenue up 12.7%. Financial services remain a key growth engine, producing a 24.7% increase to R4.5 billion, while our mobile money platforms, including Safaricom, processed $500.7 billion in transaction value over the last 12 months. These outcomes underscore the strength of our system of advantage and progress against our Vision 2030 agenda to deepen digital and financial inclusion across our markets.”
Despite a challenging consumer environment and a strong comparative period last year in South Africa, Joosub explains that service revenue grew by 1.4% to R16.4 billion, supported by robust growth in financial services, fixed connectivity and internet of things.
He adds that the contract segment grew 2.6%, supported by average revenue per user growth. According to the CEO, prepaid revenue was under pressure as a result of a tougher consumer backdrop and promotional pricing. Data traffic surged by 32.3% in South Africa, supported by sustained investment in network quality and a summer campaign driving strong engagement on smart devices.
“Our international business continued to deliver excellent results, with service revenue up 12.6% to R8.8 billion. The region benefited from strong commercial execution, network modernisation, and the scaling of advanced digital and financial services. Data revenue grew by 21.1%, contributing 31.2% of international business service revenue, while M-Pesa revenue accelerated to 22.1% growth, driven by double-digit expansion across all markets.
“The customer base increased by 12.5% to 65.7 million, reflecting the success of innovative financing options and adoption of new products, such as communal savings and fuel loans.”
Mergers and acquisitions update
From a mergers and acquisitions perspective, Joosub says the implementation of the Maziv transaction in South Africa began on 1 December, including a significant capital injection that better positions the open access fibre ecosystem to accelerate roll out and enhance customer experience, while supporting inclusive connectivity.
“Separately, on 4 December 2025, we announced a landmark transaction to increase Vodacom’s effective shareholding in Safaricom to 55% by acquiring 15% from the Government of Kenya and 5% from Vodafone Group, for a total consideration of US$2.1 billion.”
Subject to regulatory approvals, he points out that this transaction will result in the consolidation of Safaricom into Vodacom upon completion.
“Strategically, this aligns closely with Vision 2030 as it strengthens our Pan-African fintech and connectivity leadership, while unlocking significant opportunities to share best practice across Kenya, Ethiopia and our broader footprint as we drive sustainable value for customers, communities and shareholders.”
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