Safaricom's parent company Vodacom posted its strongest earnings growth in years, with headline earnings per share rising 22.9% in the fiscal year ended 31 March 2026.
- •Egypt and the international business delivered the momentum that South Africa could not, even as a Nairobi courtroom holds up the deal that could reshape the Group entirely.
- •Vodacom Group reported service revenue of R133.6 billion, up 10.6%, or 12.9% on a normalized basis, against a double-digit medium-term target.
- •The Group's acquisition of an additional 20% stake in Safaricom, which could reconfigure its earnings in the short-term and long-term, remains blocked by a status quo order from the High Court of Kenya.
"I think we've more than delivered on the numbers and the guidance," CEO Shameel Joosub told CNBC Africa after the results, describing the performance as a proof point for the Group's ability to sustain double-digit growth across a diversified African portfolio.
Vodacom's EBITDA rose 12.8% to R62.6 billion at a margin of 37.4% as Free cash flow grew 20.1% to R21.8 billion.
The Board declared a full-year dividend of 735 cents per share, up 18.5%, ahead of analyst consensus (All values in South African Rands).
Where the Growth Is
Egypt is now Vodacom's most profitable segment, contributing 29.7% of Group EBITDA, up from 24.2% in FY2025. Vodafone Egypt delivered local currency service revenue growth of 36.2% and EBITDA growth of 44.5%, at a segment margin of 45%.
Vodafone Cash, Egypt's mobile money platform, grew revenue 48.2% in local currency, with customers rising 28.5% to 14.7 million. Growth decelerated to 23.6% in local currency in Q4 as post-devaluation price increases were lapped, though management cited continued commercial momentum.
The International business, covering Tanzania, DRC, Mozambique and Lesotho, expanded EBITDA margins from 29.3% to 34.6%, with EBITDA up 27.8% to R12.1 billion. Tanzania led with local currency EBITDA growth of 38.8%, absorbing a R742 million depreciation charge from a radio access network swap-out.
Safaricom's M-Pesa revenue across International grew 22.8% normalized to R9.9 billion, with beyond-core services comprising lending, savings and merchant offerings now at 46.4% of M-Pesa revenue.
South Africa generated R64.4 billion in service revenue, up 2.1%, with EBITDA declining 1.7% to R33.0 billion after a one-off settlement cost in H1 related to the Kenneth Makate "Please Call Me" matter, resolved out of court in November 2025. Stripping that out, EBITDA grew 1.8% in H2. Service revenue growth accelerated to 2.8% in Q4, supported by February 2026 contract price adjustments. Prepaid mobile customer revenue fell 2.1% for the full year, moderating to -1.6% in Q4.
The Deal That Changes Everything
Safaricom, accounted for as an associate at Vodacom's 34.94% effective interest, contributed R4.6 billion to Group operating profit, up 38.3%. On a 100% basis, Safaricom generated KSh 414.1 billion in service revenue, up 11.5%, and KSh 220.3 billion in EBITDA, up 27.9%, at a Kenya margin of 56.7%. Safaricom's unconsolidated financial services revenue of R24.5 billion is 46% larger than Vodacom's entire consolidated Group financial services line of R16.8 billion.
In December 2025, Vodacom agreed to acquire an additional effective 20% stake in Safaricom for US$2.1 billion from the Government of Kenya, taking its shareholding to approximately 54.93% and triggering full consolidation under IFRS 3. Consolidation would add R55.5 billion in service revenue and R29.4 billion in EBITDA to reported Group numbers on a 100% basis, more than doubling reported EBITDA. It would also trigger a fair value remeasurement of Vodacom's existing 34.94% stake, likely generating a significant one-off accounting gain.
A virtual hearing on the conservatory order, postponed from 27 April 2026, was scheduled for 18 May 2026. Vodacom has not disclosed the identity of the applicant or the legal grounds of the challenge. "The transaction will become effective once the status quo order is lifted," the Group said in its results announcement.
