As Vodacom Group unveils its reviewed annual results for 2024, the numbers speak volumes: a robust revenue of R151 billion, up by 26.4%, with the recent acquisition in Egypt playing a pivotal role. This year, not only did Vodacom surpass the 200 million customer milestone, but it also celebrated 30 years of connecting people and transforming lives, reinforcing its market leadership in Africa.
The company’s strategic focus was not just on expanding its geographical footprint but also on deepening its market penetration. Vodacom reported a free cash flow generation of R18.2 billion, which supported a reduced leverage ratio of 0.9x net debt to EBITDA, indicating a strong financial position. This financial health has enabled the company to declare a consistent full-year dividend of 590 cents per share, in line with its dividend policy.
An impressive customer base of 203.1 million across its operations—bolstered by full inclusion of Safaricom—highlights Vodacom’s vast reach. The group has made significant strides in the financial services sector, with 78.9 million customers transacting an astounding US$1.1 billion per day, driving financial services revenue up by 32.2% to R13.0 billion.
The highlights of the fiscal year include:
- Group revenue surged by 26.4% to reach R151 billion, driven by the acquisition of Egypt.
- Group service revenue grew by 29.1%, with a pro-forma inclusion of Egypt contributing 9.2%.
- Group EBITDA increased by 24.3%, or 7.8% on a pro-forma basis.
- Group free cash flow amounted to R18.2 billion, supporting a lower leverage ratio of 0.9x net debt to EBITDA.
- The combined customer base across the Group reached 203.1 million, including Safaricom on a 100% basis.
- Financial services revenue surged by 32.2% to R13.0 billion, contributing 10.8% to Group service revenue.
- The full-year dividend remained consistent with the company’s policy at 590 cents per share.
The Group’s statutory performance measures for the fiscal year showed notable growth across various indicators:
- Revenue reached R150.6 billion, up 26.4% from the previous year.
- Service revenue soared to R120.9 billion, reflecting a 29.1% increase.
- Net profit stood at R19.3 billion, marking a 6.4% rise from the prior year.
- The net debt to EBITDA ratio improved to 0.9 from 1.1 in the previous year.
- Earnings per share and headline earnings per share decreased by 11.2% and 10.8% respectively.
- Total dividend per share decreased by 11.9% to 590 cents.
Vodacom’s CEO, Shameel Joosub, credited the robust growth to the strategic acquisition in Egypt and resilient performance in South Africa. He also noted the impact of the company’s diversification into new service offerings, which now represent 20% of the group’s service revenue. These offerings span digital and financial services, fixed communications, and IoT solutions, underlining Vodacom’s evolution into a multi-service tech company.
Despite facing startup losses in Ethiopia, higher finance and energy costs, and currency devaluations, notably in Egypt, Vodacom remains committed to substantial capital expenditure, investing R11.1 billion in infrastructure to enhance customer experience and technological capabilities.
Our commitment to enhancing customer experience through substantial investments in technology and network infrastructure remains unwavering. With R11.1 billion allocated this year, we are not just investing in technology, but in building a resilient and inclusive digital future for the communities we serve across Africa.
Shameel Joosub, Vodacom Group CEO
As Vodacom continues to navigate through economic uncertainties and operational challenges, it remains focused on its Vision 2025 targets. The company is laying the groundwork for the next phase of its strategy, emphasizing innovation, customer-centricity, and digital transformation. With a solid performance in FY 2024 and a proactive approach to strategic investments, Vodacom is poised to maintain its leadership position and drive further growth across its markets.
