Vodacom Group Limited has announced its interim results for the six months ending 30 September 2024, demonstrating resilience despite significant foreign exchange challenges. The Group reported a 1% increase in revenue to R74 billion (10.4% on a normalized basis) and declared an interim dividend of 285 cents per share, reflecting an 86% payout ratio.
Performance Highlights
Group service revenue grew by 9.9% on a normalized basis, hitting the upper range of Vodacom’s medium-term targets. Financial services revenue rose by 7.8% (17.6% normalized) to R6.7 billion, contributing 11.4% to Group service revenue. EBITDA fell 2.7% to R26.6 billion but showed an 8.5% growth on a normalized basis.
As of this reporting period, Vodacom serves 205.6 million customers, including 82.9 million financial services users, across markets such as South Africa, Egypt, and Kenya.
Regional Insights
In South Africa, service revenue grew by 1.3% to R31.1 billion, driven by growth in services beyond mobile and in prepaid mobile data. EBITDA increased by 2.3% despite pressure in the wholesale segment.
Egypt delivered R13 billion in service revenue, with local currency growth of 44.1%, offsetting currency devaluation challenges. Safaricom in Kenya achieved strong results, with 12.9% service revenue growth, underpinned by M-Pesa’s 16.6% revenue increase.
International operations saw mixed results, with notable growth in Tanzania (19.1%) and DRC (9.0%), although EBITDA declined 20% due to one-off costs. Ethiopia’s customer base surged by 47.1% to 6.1 million, despite currency challenges.
Strategic Outlook
Vodacom’s CEO, Shameel Joosub, highlighted the company’s commitment to driving digital and financial inclusion. “Despite macroeconomic pressures, Vodacom continues to pursue its purpose of connecting people for a better future,” said Joosub.
Looking ahead, Vodacom aims to invest in expanding its footprint and services, particularly in underserved areas, while addressing ongoing economic and regulatory challenges.
The Group’s strategy remains focused on leveraging its diversified portfolio, including mobile money and IoT, to maintain market leadership and drive sustainable growth.
