JSE-listed Vodacom Group on Monday reported a 14.7% increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) to R30.46-billion during the six months ended September 30.

Earnings per share rose 33.3% to 472c, and headline earnings per share increased 32.3% to 467c, while operating profit increased 25.5% to R20.24-billion, which enabled Vodacom to declare an interim dividend of 330c, an increase of 15.8%.

The company, which now serves 223.2-million customers, up 8.6% year-on-year, and 93.7-million financial services customers, including Safaricom on a 100% basis, achieved a 10.9% increase in revenue to R81.59-billion and 12.2% increase in service revenue to R65.81-billion.

“We delivered robust growth – evidenced by the normalised 13.6% increase in group service revenue to R65.8-billion which is tracking above our medium-term target of double-digit growth,” said Vodacom Group CEO Shameel Joosub.

“Beyond mobile – including financial and digital services, fixed and Internet of Things – contributed 21.8% of group service revenue, moving us closer to our Vision 2030 target of exceeding 30%.”

On a regional level, Egypt achieved 42.3% local currency service revenue growth. Service revenue for the six months ended September 30 reached R17.6-billion, and now contributes 26.8% to the group total.

“This was supported by a strong summer campaign, a 5.9% increase in Egypt’s customer base to 51.1-million, Net Promotor Score leadership, data traffic growth of 21.9% and the rapid adoption of Vodafone Cash.”

Further, Vodacom launched 5G services in Egypt in June, leveraging existing investment into 5G-ready sites.

“As we roll out this technology, we expect this will help sustain Egypt’s growth in the foreseeable future,” Joosub added.

In South Africa, service revenue increased 2.2% to R31.7-billion, underpinned by the contract segment, beyond mobile services and the company’s R54.1-billion investment in network resilience over the past five years.

The investment, in addition to increased smartphone penetration and new prepaid LTE offerings, contributed to a data traffic increase of 31.1% during the period under review.

Further, Vodacom is in the final approval phase of its acquisition of a 30% stake in Maziv.

“We are confident this transaction will enable us to accelerate network expansion, help address the cost to communicate and contribute meaningfully to job creation in South Africa.”

Separately, the Please Call Me matter has been settled by the parties out of court.

Vodacom’s International business, comprising the Democratic Republic of Congo (DRC), Lesotho, Mozambique and Tanzania, reported service revenue growth of 13.3% to R16.7-billion, with customer numbers increasing by 13.6% to 63.7-million.

“Double-digit growth in DRC, Lesotho and Tanzania was supported by strong momentum in M-Pesa and data services, while we are seeing improved commercial traction in Mozambique.”

“What is particularly encouraging is that all four markets produced accelerated growth rates in the second quarter.”

Safaricom delivered an excellent performance on the back of another strong performance in Kenya and is continuing to scale in Ethiopia, Joosub said, highlighting that Safaricom service revenue increased 11.1%, supported by growth in Kenya of 9.3% and growth in Ethiopia of 179.1%.

In Kenya, M-Pesa revenue increased 14% on the back of heightened platform engagement and a 13.3% increase in customers.

Over the past 12 months, the volume of M-Pesa transactions in Kenya has increased 22% to 39.8-billion.

“In Ethiopia, losses at our greenfield operation continue to moderate while the business scales with customer numbers reaching 11.1-million, up 83.7%. Safaricom reported net income growth of 52.1%.”

M-Pesa remains Africa’s largest mobile money platform, processing over $476.8-billion in transaction value over the year, including Safaricom.

Vodacom Group financial services revenue grew 20.3% to R8-billion, now accounting for 12.2% of group service revenue, while Safaricom M-Pesa reached R12.2-billion, highlighting the growing demand for payments, savings, lending and merchant solutions across Vodacom’s footprint.

“As we look ahead, while mindful of the global economic volatility, I am confident that our diversified portfolio, best-in-class digital and financial ecosystem and purpose-led approach position us well to capture the structural growth opportunity that Africa represents.”

Vodacom aims to grow its customer base to over 260-million and its financial services customers to 120-million by 2030, while delivering double-digit Ebitda growth.

During the six months under review, Vodacom made sustained investments of R9.4-billion into technology and networks, with a plan to spend R23-billion across its markets in the current financial year.

Including Safaricom, Vodacom added 1 881 4G and 3 524 5G sites year-to-date.