Vodacom Boosts the Dividend on Safaricom and Financials Growth, as JSE: VOD Share Price Soars Above R150
Higher revenue, profitability, and shareholder returns were backed by financial services, Safaricom expansion, and growing digital infrastructure, according to South Africa's Vodacom Group's FY2026 results.
Quick overview
- Vodacom Group reported a 10.1% increase in revenue to R167.7 billion for FY2026, driven by strong performance in telecom, fintech, and infrastructure.
- The company's financial services division saw a 19.6% revenue growth, benefiting from rising digital adoption and an expanding customer base.
- Vodacom's share price has risen approximately 11% over the past year, reflecting positive investor sentiment towards its improving profitability and growth strategy.
- Despite a positive outlook, the company faces competitive risks and the challenge of balancing capital expenditure with strong earnings growth.
Higher revenue, profitability, and shareholder returns were backed by financial services, Safaricom expansion, and growing digital infrastructure, according to South Africa’s Vodacom Group’s FY2026 results.
Revenue and Profit Growth Accelerate
Vodacom delivered solid financial performance for the year ended March 31, 2026, supported by strong momentum across its telecom, fintech, and infrastructure businesses.
The group reported:
- Revenue increased 10.1% to R167.7 billion
- Service revenue rose 10.6% to R133.6 billion
- EBITDA climbed 12.8% to R62.6 billion
- Headline earnings per share increased 22.9% to 1,053 cents
- Net income rose to R20.7 billion from R16.6 billion a year earlier
The company also declared a final dividend of 405 cents per share, bringing the total annual dividend to 735 cents per share, an 18.5% increase year-over-year and above analyst expectations.
Shares of Vodacom have risen around 11% over the past year on the Johannesburg Stock Exchange as investors responded positively to improving profitability and expanding operations across Africa.
Financial Services Continue Driving Growth
One of the biggest growth drivers remained Vodacom’s financial services division, which continued benefiting from rising digital adoption across the continent.
Financial services revenue increased 19.6% to R16.8 billion, while transaction value processed through Vodacom’s fintech platforms reached approximately US$525.6 billion during the year.
The group’s financial services customer base also expanded significantly, helping strengthen its position in mobile payments and digital banking.
Management said fintech and digital services remain central to the company’s Vision 2030 strategy as it looks to diversify beyond traditional mobile connectivity.
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.
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Safaricom and International Markets Support Expansion
Vodacom’s international operations delivered another year of double-digit growth, particularly in:
- Tanzania
- Democratic Republic of Congo
- Lesotho
- Egypt
Egypt stood out with local currency service revenue growth of 36.2% and EBITDA growth of 44.5%.
Meanwhile, Safaricom contributed R4.6 billion to group operating profit, supported by continued growth in Kenya and rapid expansion in Ethiopia, where customer numbers surged 54.2% to 13.6 million.
Vodacom also agreed to acquire an additional 20% stake in Safaricom, further strengthening its exposure to East African growth markets.
Infrastructure Investment Remains Aggressive
The company continued investing heavily in network expansion and digital infrastructure.
Capital expenditure reached R23.6 billion during the year, while the group rolled out:
- More than 3,000 new 4G sites
- Over 6,000 new 5G sites
Vodacom also completed a strategic investment in Maziv aimed at expanding fibre connectivity in underserved communities.
Management emphasized that connectivity expansion, cybersecurity, and responsible AI governance remain long-term priorities as digital adoption accelerates across Africa.
Outlook Remains Positive but Competitive Risks Persist
Vodacom’s latest results reinforced confidence in its long-term growth strategy, particularly as fintech adoption and data demand continue rising across emerging markets.
However, competition across African telecom and fintech markets remains intense, while continued infrastructure spending may pressure margins if economic conditions weaken or currency volatility increases.
Investors will likely focus on whether Vodacom can maintain strong earnings growth while balancing capital expenditure, regulatory risks, and expanding operations across multiple high-growth regions.
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