Vodacom Shares Surge 7% As Profits Jump And Safaricom Deal Boosts Growth

Vodacom shares have surged by more than 7% after the telecommunications group reported strong financial results for the six months ended September 2026.

The company recorded a 25.7% increase in headline earnings per share, while its customer base grew to 250 million across eight African countries.

Vodacom said the period marked one of its strongest six-month performances and a significant milestone in its expansion following an increase in its shareholding in Kenyan telecommunications operator Safaricom to 55%.

Vodacom Reports Strong Revenue And Earnings Growth

Vodacom Group reported a 25.6% increase in group revenue to R102.5 billion for the six months, reflecting the consolidation of Safaricom from the second quarter.

Service revenue increased by 29.4% to R85.1 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 40% to R42.7 billion.

On a pro-forma basis, including Safaricom, service revenue increased by 13.3%, while EBITDA grew by 18%.

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Headline earnings per share climbed 25.7% to 587 cents. The group also declared an interim dividend of 355 cents per share, representing a 7.6% increase on the previous period.

Vodacom now serves 250 million customers across eight African countries, moving closer to its Vision 2030 target of reaching 275 million people.

Safaricom Acquisition Faces Legal Challenge In Kenya

The increased shareholding in Safaricom has been a major contributor to Vodacom’s latest results. However, the acquisition remains subject to a legal dispute in Kenya.

The Kenyan High Court recently declared the acquisition null and void. Vodacom is pursuing an expedited appeal, while the Court of Appeal has ordered that the status quo be maintained during the process.

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As a result, Safaricom has been accounted for as a subsidiary of the Vodacom Group from 30 June 2026.

Speaking about the legal challenge, group chief executive Shameel Joosub said Vodacom was confident of succeeding in its appeal, which is also backed by the Kenyan government.

Vodacom Targets AI Data Centres And Prepaid Growth

Vodacom has also outlined plans to seek partners to develop artificial intelligence data centres across Africa as it expands its digital infrastructure ambitions.

In South Africa, the group reported a return to growth in its prepaid segment, supported by increased data consumption.

Speaking to Stephen Grootes, Joosub highlighted the company's strategy of offering customers larger data bundles at more competitive prices.

"Traffic growth in this segment is very strong and is actually accelerating."

"We increased the value and of course made it a lot more competitive, so people are consuming a lot more data in the process. If you had someone getting 1 gig, you'll now find them taking 5 gigs."

The group says its expanding customer base, increased data consumption and Safaricom investment are supporting its growth ambitions across the continent.