A strong second half performance enabled JSE-listed Vodacom to deliver growth, on a normalised basis, during the year ended March 31, 2025.

In particular, South Africa, Egypt and Tanzania emerged as standouts and performed well during the year under review, said Vodacom Group CEO Shameel Joosub.

For the 2025 financial year, Vodacom reported a 1.1% contraction in group earnings before interest, taxes, depreciation and amortisation (Ebitda) to R55.5-billion; however, on a normalised basis, this represented growth of 7.8%.

Headline earnings a share increased 1.3% to 857c, reflecting strong growth in the second half, while earnings a share increased 2% to 859c during the year under review.

Group revenue edged up 1.1% on a reported basis and 10.9% on a normalised basis to R152.2-billion, while reported group service revenue contracted 0.1% - but increased 11.2% on a normalised basis – to R120.73-billion.

This, Joosub said, was above the company’s medium-term target, highlighting the resilience of the diversified portfolio and strong commercial execution.

Financial services revenue increased 7.6% on a reported basis, and 17.6% on a normalised basis, to R14-billion, contributing 11.6% to group service revenue.

During the year ended March 31, Vodacom added 8.2-million additional customers across its footprint, growing its customer base by 4% to 211.3-million, along with 87.7-million financial services customers, including Safaricom on a 100% basis.

“Recent currency market stability, particularly in Egypt, bodes well for the group’s performance in the foreseeable future. So too does the resilient performance in South Africa and the outstanding, continued growth in Egypt and Tanzania,” Joosub said.

“We remain particularly encouraged by the strong performance in Egypt, which delivered a stellar 45.2% increase in local currency service revenue, buoyed by increased uptake of Vodafone Cash and the growing demand for mobile and fixed connectivity.”

Egypt, with over 50-million customers and a significant improvement in net promoter scores, accounts for 23% of group service revenue.

Meanwhile, Vodacom’s South African business demonstrated continued resilience, achieving service revenue growth of 2.3%, led by a recovery in the prepaid segment, sustained data traffic growth of over 36.4%, and the increasing contribution of its beyond mobile services.

“These services, encompassing financial and digital services, fixed and Internet of Things, contributed R11.2-billion, or 17.8%, of South Africa’s service revenue. The successful execution of seasonal campaigns, combined with an industry-leading response to power grid stability, supported an increase in Ebitda of 2.3% in South Africa, while we invested R11.6-billion to further enhance network resilience and spectrum efficiency.”

The International business, spanning the Democratic Republic of Congo (DRC), Lesotho, Mozambique and Tanzania, achieved 7.1% normalised service revenue growth.

“Tanzania was the standout performer, delivering service revenue growth of 20.5% and Ebitda growth of 25.2% in shillings. Lesotho and DRC grew service revenue by 10.4% and 8.2% respectively, in local currency, showcasing good commercial momentum,” he continued.

While the businesses in Mozambique and DRC have been impacted by post-election tensions and conflict in eastern DRC respectively, with momentum behind peace efforts in both countries, Vodacom is hopeful of improved prospects into the 2026 financial year.

“While we remain hopeful of a recovery in Mozambique and sustained resolution in DRC, we are actively supporting our people and communities in the affected regions, including through our Foundation initiatives. “

Meanwhile, M-Pesa continues to solidify its leadership as Africa’s largest mobile money platform, processing over $450.8-billion in transaction value across its markets over the year, reflecting an 18.3% increase.

Additionally, Safaricom reported R22.6-billion of financial services revenue, underscoring the growing demand for payments, savings, lending and merchant solutions.

In Kenya, Safaricom delivered an excellent performance with service revenue up 10.5% in shillings, supported by strong data and M-Pesa growth.

“In Ethiopia, we recorded a 103.2% increase in our customer base to 8.8-million, driven by growing demand for connectivity and a promising commercial trajectory. Service revenue in local currency increased 238.9%, with strong average-revenue-per-user growth adding to the customer gains.”

“As the second most populous country in Africa, Ethiopia remains integral to our long-term growth ambitions, and we are encouraged by the market’s response to our entry and the regulatory strides being made,” Joosub commented.

While a currency devaluation in Ethiopia impacted group earnings in the first half of the financial year, Safaricom delivered a strong recovery in the second half, contributing to group earnings growth for the full year.

“Over the past five years, we continued to invest significantly in infrastructure and expect to spend more than R20-billion in capital expenditure in the new financial year – reinforcing our commitment to connectivity, digital inclusion and economic empowerment.”

Vodacom declared a final dividend of 335c a share, bringing the total dividend for the year to 620c a share, up 5.1%.