Will Vodacom Share Price JSE:VOD Resume Uptrend After H1 Strength and Strategic Progress?
Vodacom presented a robust set of half-year results, demonstrating resilience, consistent growth, and strategic ambition as it continues...
Quick overview
- Vodacom reported strong half-year results with an 11% increase in total revenues and a 32% rise in interim headline earnings.
- The company aims to expand its customer base to over 260 million and financial services customers to 120 million by 2030.
- Vodacom's interim dividend increased by 15.8%, reflecting management's confidence in cash flow stability and shareholder returns.
- The stock has rebounded significantly, climbing 65% since April 2024, indicating positive investor sentiment and growth prospects.
Vodacom presented a robust set of half-year results, demonstrating resilience, consistent growth, and strategic ambition as it continues to broaden its footprint and digital services.
Solid Half-Year Performance Reflects Operational Strength
Vodacom Group Limited reported results for the half year ended September 30, 2025, highlighting robust execution and diversified growth across its key business segments. Despite lingering pressure in prepaid markets, Vodacom’s contract and financial services divisions provided strong momentum. The company reaffirmed its commitment to sustainable growth and shareholder value, with a notable improvement in its dividend payout and a growing customer base.
The group set out an ambitious vision to expand its customer base to over 260 million and grow financial services customers to 120 million by the 2030 financial year, while targeting double-digit EBITDA growth over the long term.
Resilient Revenue and Leadership Confidence
Building on the positive momentum seen earlier in the year, Vodacom maintained its upward revenue trajectory into the second quarter. CEO Shameel Joosub praised the company’s resilience and agility, noting that the strong interim performance reflects the effectiveness of its diversified business model and long-term strategy.
Joosub added that the continued growth across multiple markets underscores Vodacom’s ability to adapt swiftly to market dynamics while strengthening its leadership in both telecommunications and digital financial services.
Headline Earnings and Legal Settlement Update
Vodacom reported a 32% increase in interim headline earnings, landing at the lower end of its revised guidance. This was partly influenced by a one-off settlement to former employee Kenneth Makate, resolving the long-standing “Please Call Me” legal dispute after 18 years.
The agreement concluded a legal saga that saw Makate initially claim R10 billion, while Vodacom had assessed the settlement closer to R50 million. The resolution removes a significant overhang for the company and provides clarity moving forward.
Vodacom Group H1 2025 Earnings Highlights
Revenue Growth and Customer Expansion
- Total Revenue: Vodacom Group reported an 11% year-on-year increase in total revenues for the first half of FY2025.
- Customer Base: The company’s total customer count grew to 223.2 million, reflecting an 8.6% rise from the prior year, underscoring continued market expansion across its African footprint.
- Service Revenue: Climbed from R58.6 billion (≈ $3.4 billion) in H1 2024 to R65.8 billion (≈ $3.8 billion) in H1 2025, highlighting broad-based growth in its service portfolio.
Earnings and Profitability
- EBITDA: Increased by 14.7% to R30.5 billion, supported by stronger operating performance and improved efficiency.
- Dividend: The interim dividend rose 15.8% to 330 cents per share, signaling management’s confidence in cash flow stability and shareholder returns.
Segment Performance for South Africa:
- Service revenue surged to R31.7 billion (≈ $1.83 billion), driven by contract customer strength and diversification beyond traditional mobile.
- Contract-Mobile Revenue: Rose 3.7% to R12.5 billion (≈ $722 million), aided by a price adjustment in March 2025.
- Prepaid Mobile Revenue: Declined 1.6% to R13.2 billion (≈ $763 million) amid increased competition and cost pressures for consumers.
Financial Services Expansion
- Fintech Growth: The group’s financial services customers reached 93.7 million, representing a key driver of recurring revenue and digital ecosystem expansion.
Stock Performance and Market Sentiment
Vodacom’s share price has experienced a remarkable rebound since finding a floor near R86 in April 2024. The stock climbed steadily to R147 by mid-May, marking an impressive 65% rally as investors responded positively to improving fundamentals and renewed growth prospects.
Though shares have been consolidating since June, the underlying sentiment remains constructive, with investors viewing the pause as part of a healthy technical reset following the strong rally.
Conclusion: Vodacom’s half-year report paints a picture of a company in motion—resilient, adaptive, and forward-looking. With strong leadership, expanding digital offerings, and a clear roadmap toward long-term growth, Vodacom stands well-positioned to deliver sustained value creation into 2026 and beyond.
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