South African mobile operator Vodacom has reported a 25.7% jump in half-year profit, helped by growth across its African markets and a fuller contribution from Kenya's Safaricom, which it consolidated from the second quarter.

The company, majority owned by Britain's Vodafone, said headline earnings per share rose to 587 cents in the six months ended 30 September 2026. It declared an interim dividend of 355 cents a share, up 7.6% on a year earlier.

Safaricom drives the group result

Vodacom took a controlling 55% stake in Safaricom at the end of June, and the Kenyan operator's results are now consolidated into the group. Group revenue rose 25.6% to R102.5 billion, boosted by that consolidation. On a pro forma basis, which includes Safaricom in the comparative period, service revenue grew 13.3% and earnings before interest, tax, depreciation and amortisation rose 18%.

The Safaricom deal has reshaped Vodacom's scale. The group now serves more than 196 million customers including Safaricom, and operates in South Africa, Tanzania, the Democratic Republic of Congo, Mozambique, Lesotho and Kenya, as well as Ethiopia through Safaricom.

Prepaid growth returns in South Africa

In South Africa, Vodacom's prepaid mobile customer revenue rose 1.7% to R13.4 billion in the six months, accelerating to 3.1% in the second quarter from 0.4% in the first. Chief executive Shameel Joosub said Vodacom had delivered on its commitment to return prepaid to growth.

Prepaid average revenue per user rose 3.5% to R59. The number of data customers fell 4.3% to 25.7 million, however, showing that the return to growth has not come without pressure on parts of the customer base.

Cost cuts and the lapping of a one-off cost from the previous year lifted South African earnings before interest, tax, depreciation and amortisation by 10.5% to R17.1 billion.

Record investment planned

Vodacom expects to spend about R12 billion on capital expenditure in South Africa in the 2027 financial year, a record, as it continues to invest in its network.

The group had already flagged a strong result. In a trading statement in late October it said headline earnings per share would rise by between 22% and 27% on the 467 cents reported a year earlier, and that reported earnings per share would be lifted sharply by a tax-neutral, non-recurring fair value gain of R23.2 billion on the remeasurement of its previously held associate interest in Safaricom. That gain did not affect headline earnings.

The interim results, released on Tuesday, landed at the top end of the guided range for headline earnings, with the dividend increase reflecting Vodacom's lower payout policy. For shareholders, the half year marks the first full reporting period in which Safaricom's contribution is visible at group level, and the first test of whether the Kenyan acquisition can sustain the growth Vodacom has promised.

Read the Reuters report on Vodacom's results and the TechCentral report on prepaid growth for the full detail.