Vodacom’s Earnings and Google Deal Reignite Investor Interest, JSE:VOD Share Price Soars
Vodacom delivered a strong third-quarter performance, underpinned by accelerating growth in Egypt and the Google Partnership reinforce its..
Quick overview
- Vodacom reported an 11% year-on-year increase in group revenue to ZAR43.9 billion, driven by strong performances in Egypt and international operations.
- Egypt emerged as a standout growth driver with service revenue surging 39%, supported by rising data consumption and financial services adoption.
- The company announced a strategic partnership with Google Cloud to enhance its digital transformation and AI capabilities, aiming to improve operational efficiency and customer care.
- Vodacom's long-term Vision 2030 ambitions are reinforced by recent strategic milestones, including increased stakes in Safaricom and investments in South African fibre infrastructure.
Vodacom delivered a strong third-quarter performance, underpinned by accelerating growth in Egypt and the Google Partnership reinforce its long-term Vision 2030 ambitions.
Group Performance: A Strong Quarter Despite Mixed Regional Trends
Vodacom reported a robust set of results for the third quarter, with group revenue rising 11% year on year to ZAR43.9 billion, reflecting broad-based momentum across its operating footprint. Growth was driven primarily by standout performances in Egypt and the group’s international operations, while South Africa delivered a more modest outcome against a demanding prior-year comparison.
The results underscore Vodacom’s evolving growth profile. While its domestic market remains mature, international markets and digital services are increasingly carrying the growth narrative—an outcome that aligns closely with management’s medium-term strategic priorities.
Share Price Performance and Outlook
Vodacom’s share price reflects the improving narrative. After bottoming near R86 in April 2024, the stock rallied sharply to around R147 by mid-2025. While consolidation followed in the second half of 2025, the recent rebound off the 500-week simple moving average has brought prices back toward the 2022 highs near R164.
While valuation and execution risks remain—particularly in a competitive and capital-intensive sector—the combination of international growth, expanding financial services, and accelerating digital transformation suggests Vodacom is steadily repositioning itself for the next phase of growth.
VODJ Chart Weekly – Rebounding Off the 50 SMA
Vodacom Group – Earnings Report for the Quarter Ending 31 December 2025
Released: Wednesday, 4 February 2026
Group-Level Performance
- Group revenue increased by 11.0% (11.7% on a normalised basis) to R43.9 billion.
- Group service revenue grew 12.7%, with normalised growth of 13.6%*, tracking favourably against Vodacom’s medium-term growth targets.
- Overall performance reflects strong momentum across international operations and financial services, offsetting slower growth in the domestic market.
South Africa
- Service revenue growth of 1.4% year-on-year.
- Growth was supported by “beyond mobile” services, including digital, enterprise, and value-added offerings.
- Competitive pricing pressures and a mature mobile market continue to weigh on headline growth.
Egypt
- Service revenue surged 39.0% to R9.5 billion, making Egypt one of the standout contributors.
- Financial services revenue in Egypt increased 59.4%, highlighting rapid adoption of digital and mobile financial solutions.
- Performance reflects strong subscriber growth, improved monetisation, and favourable macro conditions.
International Operations
- International business service revenue increased by 12.6%.
- Normalised growth accelerated to 15.4%*, indicating improving underlying trends across key African markets.
- Continued expansion in data usage, mobile money, and enterprise services supported results.
Financial Services
- Group financial services revenue rose 24.7% (26.1% normalised) to R4.5 billion.
- Mobile money and digital payments remain a key growth engine for the group.
- US$500.7 billion was transacted through Vodacom’s mobile money platforms, including Safaricom, over the last twelve months.
- Scale and transaction growth reinforce Vodacom’s position as a leading digital financial services provider in Africa.
South Africa: Stability in a Mature Market
Revenue in South Africa was flat at ZAR24 billion, a result Vodacom characterised as satisfactory given the strength of the comparative quarter last year. Competitive pressures, constrained consumer spending, and market maturity continued to limit headline growth.
However, Vodacom pointed to steady progress in “beyond mobile” services, including fibre, enterprise solutions, and digital platforms, as well as ongoing investment in network quality. These initiatives are aimed at protecting market share, improving customer experience, and positioning the business for more sustainable long-term growth rather than chasing short-term volume gains.
Egypt Emerges as a Standout Growth Driver
Egypt once again delivered exceptional performance, with revenue surging 43% year on year to ZAR11 billion. Growth was underpinned by rising data consumption, a rapidly expanding customer base, and strong momentum in financial services.
Vodacom reported that its data customer base in Egypt increased 9% to 33.4 million, supported by continued investment in network infrastructure, including 4G and 5G rollout. Financial services adoption also accelerated, reflecting increasing digital engagement and favourable structural trends within the market.
Egypt’s performance continues to highlight the value of Vodacom’s diversified geographic exposure, particularly in higher-growth African economies where mobile data and digital services penetration remain well below long-term potential.
International and Financial Services: The New Growth Core
Beyond Egypt, Vodacom’s broader international operations delivered sustained momentum, with particularly strong contributions from markets such as the Democratic Republic of Congo. These regions are benefiting from rising smartphone adoption, increasing mobile data usage, and growing demand for mobile money and digital financial services.
Including Safaricom, Vodacom surpassed 100 million financial services customers during the quarter—a milestone that underscores the scale and relevance of its fintech ecosystem across Africa. Management continues to position financial services as a cornerstone of future growth, both in terms of revenue diversification and social impact.
Google Cloud Partnership Signals AI-Driven Transformation
Separately, Vodacom announced a multi-year strategic partnership with Google Cloud, marking a significant step in its digital and AI transformation journey.
The agreement will see Vodacom migrate its fragmented data systems onto Google Cloud’s infrastructure, improving data governance and enabling real-time insights. The operator will also deploy Google’s AI technologies, including Vertex AI and Gemini models, to enhance customer care, optimise network performance, and strengthen fraud detection.
Beyond operational efficiency, Vodacom aims to leverage AI to develop new products, particularly in fintech, enterprise services, and digital education. Joosub described the initiative as “more than a technology upgrade,” calling it a deep commitment to Africa’s digital revolution and a fundamental shift in how the group operates
Strategic Milestones Accelerate Vision 2030
Commenting on the quarter, Vodacom Group CEO Shameel Joosub highlighted two major strategic developments that strengthen the group’s long-term growth outlook.
In December, Vodacom announced an agreement to acquire an additional 20% stake in Safaricom, deepening its exposure to the high-growth East African markets of Kenya and Ethiopia. In November, the group received final regulatory approval from ICASA for its strategic investment in Maziv, a South African fibre business. This transaction unlocks opportunities to accelerate fibre deployment and expand access to high-quality connectivity, particularly in underserved communities.
Joosub described the quarter as a continuation of the “ideal start” delivered in the first half of the year toward Vodacom’s Vision 2030, which focuses on inclusive connectivity, digital transformation, and sustainable growth.
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