Vodacom Group Reports 37% Revenue Surge Driven by Vodafone Egypt Acquisition

Vodacom Q2 results show R4 billion investment to mitigate load shedding impact on its network.

Vodacom Group, a leading telecommunications company, has reported a remarkable 37% year-on-year surge in revenue, reaching R35.7 billion in the quarter ended on 30 June. This substantial growth was primarily driven by the acquisition of Vodafone Egypt and the favorable impact of rand depreciation, which bolstered the quarterly performance.

International service revenue witnessed a significant increase of 23.8%, fueled by the growth in data revenue and the weaker rand. Moreover, Vodafone Egypt experienced impressive service revenue growth of 27.6% in local currency, largely attributed to the exponential rise in financial services revenue.

The group’s overall service revenue growth, including Vodafone Egypt on a pro forma basis, stood at 9%, aligning with its higher-end medium-term target.

Shameel Joosub, the CEO of Vodacom Group, expressed optimism despite the global market and economic uncertainties. He highlighted several encouraging trends in the first-quarter performance, including Vodafone Egypt’s robust service revenue growth in local currency, Vodacom South Africa’s promising data and fixed performance, significant financial services growth, and the expansion of M-Pesa’s ecosystem into new service offerings, notably in the merchant sector.

In South Africa, Vodacom has invested a substantial R4 billion over the past four years to mitigate the impact of load shedding on its network. CEO Shameel Joosub emphasized that this strategic investment has proven to be fruitful, contributing to the company’s continued success and performance.

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