In a powerful demonstration of strategic resilience, Vodacom Group today unveiled a set of exceptionally strong financial results for the six months ended September 30, 2025, effectively weathering a significant one-off financial settlement to post double-digit growth across its key metrics.
The telecommunications giant reported a 12.2% surge in group service revenue to R65.81 billion, driving a 10.9% increase in overall revenue to R81.59 billion. This robust top-line performance translated directly to the bottom line, with headline earnings per share (HEPS) – the primary measure of profitability in South Africa – skyrocketing by 32.3% to 467 cents.
The results were shadowed, yet not overshadowed, by the final chapter of a long-running corporate saga: the settlement with Nkosana Kenneth Makate, the inventor of the ubiquitous “Please Call Me” service. The group confirmed that the financial impact of this settlement reduced operating profit in its flagship South African operation by 11%. Despite this multi-billion rand outflow, Vodacom’s momentum remained unchecked, allowing the board to confidently declare a 15.8% increase in the interim dividend to 330 cents per share, a direct reward to shareholders for their patience and a signal of robust future confidence.
A Tale of Two Stories: South Africa’s Drag and the Roaring International Engine
A deeper dive into the results reveals a clear narrative of two distinct operational theatres.
In South Africa, the Makate settlement cast a palpable shadow. Service revenue growth was more subdued, and the aforementioned 11% hit to operating profit brought the segment’s figure to R8.5 billion. This underscored the material cost of resolving the two-decade-long dispute. However, even here, there were green shoots. The consumer segment showed resilience, and the company continued to invest heavily in its network and IT systems, laying the groundwork for future efficiency.
The true star of the show, however, was Vodacom’s international portfolio. Operations across Tanzania, the Democratic Republic of Congo (DRC), Mozambique, Lesotho, and Ethiopia became the primary engine of growth. This segment delivered explosive service revenue growth, far outstripping the South African performance. The success was largely driven by a relentless expansion of M-Pesa, Vodacom’s pioneering mobile money platform. The group added millions of new financial services customers, pushing the total to a staggering 93.7 million users across its footprint. This “fintech” revenue stream, with its high margins and sticky customer relationships, is increasingly becoming Vodacom’s crown jewel and a critical hedge against traditional voice and data commoditization.
By the Numbers: A Foundation of Growth
The group’s strategic execution was reflected in several key performance indicators:
- Customer Base: Vodacom’s total reach expanded to over 223 million customers, a testament to its network reliability and attractive service offerings across Africa.
- Financial Services: As noted, users grew to 93.7 million, with transaction value on M-Pesa platforms climbing sharply.
- Operating Profit: Group-wide, operating profit surged an impressive 25.5% to R20.24 billion, indicating strong cost management and the scaling benefits of its international operations.
- Cash Flow: In a critical turnaround, the group reported a positive free cash flow of R2.7 billion, a vital metric that signals strong financial health and the ability to fund future investments, reduce debt, and return cash to shareholders.
Leadership Commentary: Looking Back and Charging Forward
In a statement, Vodacom Group CEO, Shameel Joosub, acknowledged the dual nature of the period. “The first half of the 2025 financial year has been a pivotal one for Vodacom. We have successfully closed a significant chapter in our company’s history with the fair and final settlement of the ‘Please Call Me’ matter, allowing us to move forward with clarity and focus.”
He was quick to pivot to the future. “More importantly, these results showcase the incredible strength and diversification of our business. The exceptional growth from our international markets, coupled with the runaway success of our financial services platform, proves that our long-term strategy is yielding the desired results. Our investment in technology and our commitment to connecting and empowering communities across Africa is driving sustainable value for all our stakeholders.”
The market’s reaction is anticipated to be positive, as the results convincingly demonstrate that Vodacom has not only absorbed a major financial blow but has used its diversified model to emerge stronger, more profitable, and with a clearer growth trajectory than ever before. The company appears well-positioned to continue its expansion, with its African fintech ambitions leading the charge.
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