Vodacom Group has reported a 1.6% increase in revenue to R39.5 billion for the third quarter of its 2025 financial year, with results impacted by the strengthening of the South African rand.
However, on a normalised basis, which accounts for currency fluctuations, the company’s service revenue showed an 11.6% increase, surpassing its medium-term target.
South Africa, Vodacom’s largest markxet, posted a 3.2% rise in service revenue to R16.2 billion, benefiting from a stronger prepaid segment and continued growth in its digital and financial services.
Egypt remained the strongest performer in local currency terms, recording a 44.3% increase in service revenue despite the impact of the Egyptian pound’s devaluation on the reported figures.
“While currency headwinds continue to impact various markets where we operate, the focused execution of our strategy has resulted in a resilient operational response to the extent that we remain well on track to deliver on our medium-term financial targets,” said Shameel Joosub, Vodacom Group chief executive in a statement.
“Additionally, the recent currency market stability, particularly in Egypt, bodes well for the Group’s performance in the year ahead,” Joosub added.
The South African mobile communications company’s international markets saw a 7% normalised increase in service revenue, though reported growth was muted at 1.4% due to the currency impact.
In South Africa, Vodacom’s revenue rose by 4.7% to R23.9 billion, driven largely by an improved performance in the prepaid market, which saw a 5.6% revenue increase.
Data traffic surged by 40.6%, highlighting increased customer engagement with digital services. The contract segment posted a 3.9% rise in revenue, supported by a price adjustment earlier in the year.
Financial services in South Africa also saw a 9.9% increase in revenue, reaching R889 million, supported by insurance and lending services.
Vodacom invested R3.2 billion in network infrastructure during the quarter and expects to spend between R11.0 billion and R11.2 billion for the full year, focusing on improving customer experience and expanding coverage.
Egypt’s financial performance was heavily influenced by currency fluctuations, with reported revenue falling by 7.5% to R7.8 billion.
However, in local currency, service revenue surged by 44.3%, reflecting strong commercial momentum.
Customer numbers rose by 6.2% to 50.7 million, while financial services revenue in the country jumped by 77.7% in local currency, driven by a 40.7% increase in Vodafone (NASDAQ:VOD) Cash users.
The company announced a US$150 million investment in a 5G licence in Egypt, with plans to incorporate the rollout into its existing capital expenditure framework.
Vodacom’s international operations, which include markets such as Tanzania, the Democratic Republic of the Congo (DRC), Mozambique, and Lesotho, posted a 1.4% increase in service revenue to R7.8 billion. On a normalised basis, service revenue rose 7.0%, helped by strong performances in Tanzania and DRC.
Tanzania led with a 20.5% increase in local currency service revenue, while DRC saw an 8.1% rise in US dollar terms.
In contrast, Mozambique’s revenue declined by 14.1% due to post-election unrest and pricing adjustments.
The segment’s data revenue grew by 15.4%, supported by increasing smartphone adoption and higher data usage. M-Pesa revenue across international markets rose by 10.2% on a normalised basis, driven by growing financial services adoption.
Vodacom’s financial services revenue grew by 5.7% to R3.6 billion, with a normalised growth rate of 17.2%. The company processed US$437.7 billion in mobile money transactions over the past year, cementing its position as Africa’s largest mobile money platform by transaction value.
In South Africa, financial services revenue accounted for R889 million, while Egypt and international markets contributed R581 million and R2.2 billion, respectively.
Across its footprint, Vodacom reported 50.3 million financial services customers, reflecting a 15.1% year-on-year increase. The company’s mobile super-apps, including VodaPay and M-Pesa, continue to drive digital and financial inclusion, with Egypt and Tanzania seeing particularly strong customer adoption.
Vodacom has lodged an appeal against the Competition Tribunal’s decision to block its proposed acquisition of a joint control stake in South African fibre operator Maziv. The company remains committed to expanding fibre access in underserved areas, citing the deal’s potential benefits for bridging South Africa’s digital divide.
In the long-running “Please Call Me” legal dispute, Vodacom is awaiting a ruling from the Constitutional Court after a Supreme Court of Appeal decision raised the potential compensation owed to former employee Nkosana Makate.
The court’s majority decision suggests that Vodacom could be required to pay as much as R29 billion, while Makate has claimed compensation of R9.4 billion plus interest.
Vodacom expects continued growth in service revenue and financial services adoption over the medium term. The company's target is high single-digit growth in service revenue.
They also aim for non-mobile services (digital and financial services, fixed-line, and IoT) to account for 25-30% of group revenue.
