Vodacom Q1 2026 Revenue Rises 5.9% to R42.4 Billion

In Short

• Vodacom Group said revenue rose 5.9% to R42.4 billion for the quarter ended 30 June 2026.
• Service revenue, money earned from core telecom services like voice and data, grew 6.3% to R34.3 billion.
• Vodacom completed its move to a controlling stake in Safaricom, lifting ownership from 35% to 55%, effective 30 June 2026.
• The group updated its dividend policy and now targets paying out at least 65% of headline earnings.

What Happened

Vodacom Group, which owns Vodacom, released a trading update for the quarter ended 30 June 2026 showing steady growth, despite currency pressure.

Group revenue increased 5.9% to R42.4 billion. The company said results were impacted by translation effects from a stronger rand, which can reduce reported growth when earnings from other countries are converted into rands.

Group service revenue rose 6.3% to R34.3 billion. Vodacom also pointed to stronger underlying performance on a normalised basis, which adjusts for items like currency movements.

A major change for the group is the completion of its Safaricom transaction. Vodacom increased its Safaricom shareholding from 35% to 55%, giving it control and expanding exposure to East African connectivity and mobile money.

Vodacom said group financial services revenue grew 17.8% to R4.5 billion. It also noted that US$547.9 billion was transacted through its mobile money platforms over the last 12 months, including Safaricom.

On dividends, Vodacom updated its policy and now targets a payout of at least 65% of headline earnings. Headline earnings is a South Africa-specific profit measure that strips out certain once-off items.

Why It Matters

Vodacom’s controlling stake in Safaricom increases its scale in Fintech and mobile money, where transaction volumes and financial services revenue are growing faster than traditional telecom services.

For investors, the higher dividend payout target signals confidence in cash generation, even as the group invests in networks and expands in markets like Egypt, Tanzania, DRC, and Lesotho.

For African tech operators and founders, the update reinforces a trend, big telcos are leaning harder into financial services and “beyond mobile” digital products to drive growth as data and voice mature.