Trading update for the quarter ended 31 December 2025 (the quarter)

Highlights

• Group revenue grew 11.0% (11.7%*) to R43.9 billion.
• Group service revenue grew 12.7%, with normalised growth of 13.6%* tracking favourably against our medium-term target. 
• South Africa service revenue growth increased 1.4%, supported by beyond mobile.
• Egypt grew service revenue by 39.0% to R9.5 billion, with Egypt financial services revenue up 59.4%.
• International business service revenue increased by 12.6%, with normalised growth accelerating to 15.4%*.
• Group financial services revenue increased by 24.7% (26.1%*) to R4.5 billion.
• Transacted US$500.7 billion through our mobile money platforms, including Safaricom, over the last twelve months.

Shameel Joosub, Vodacom Group CEO commented:

During the third quarter, Vodacom Group made significant strategic progress, marked by two milestones that strengthen our long-term growth profile and accelerates inclusive connectivity across our footprint. In December, we announced an agreement to acquire an additional 20% stake in Safaricom, reinforcing our commitment to the high growth East African markets of Kenya and Ethiopia. In November, our acquisition of a strategic stake in South African fibre business Maziv received ICASA’s final approval, unlocking the opportunity to accelerate fibre deployment and expand access to high-quality connectivity, particularly in historically underserved communities. From a financial performance perspective, the ideal start that we delivered in the first half of the year to our bold Vision 2030 ambitions continued into the third quarter. This encouraging momentum underscores our confidence in the Group’s medium-term growth trajectory in an operating environment shaped by macroeconomic and currency stability, which should bode well for the Group’s performance for the full financial year.

The quarter benefited from sustained growth in Egypt and our International business – including a strong performance in DRC – while South Africa delivered modest but satisfactory revenue growth against a particularly strong comparative quarter last year. Including Safaricom, we passed the 100 million financial services customers mark during the quarter, illustrating our purpose-led impact on people and economies across our markets. We continue to invest in quality and resilience, modernising networks, scaling 4G and 5G where appropriate, and expanding fibre to bridge the digital divide.

At a Group level, we delivered a strong performance across our diversified portfolio and beyond mobile services, with Group revenue increasing 11.0% to R43.9 billion and Group service revenue up 12.7% (13.6%*). Financial services remains a key growth engine, producing a 24.7% increase to R4.5 billion, while our mobile money platforms, including Safaricom, processed US$500.7 billion in transaction value over the last twelve months. These outcomes underscore the strength of our System of Advantage and progress against our Vision 2030 agenda to deepen digital and financial inclusion across our markets.

Despite a challenging consumer environment and a strong comparative period last year in South Africa, service revenue grew by 1.4% to R16.4 billion, supported by robust growth in financial services, fixed connectivity, and IoT. The contract segment grew 2.6%, supported by ARPU growth. Prepaid revenue was under pressure as the result of a tougher consumer backdrop and promotional pricing. Data traffic surged by 32.3%, supported by sustained investment in network quality and a highly successful summer campaign driving strong engagement on smart devices.

Our International business continued to deliver excellent results, with service revenue up 12.6% (15.4%*) to R8.8 billion. The region benefited from strong commercial execution, network modernisation, and the scaling of advanced digital and financial services. Data revenue grew by 21.1% (24.1%*), contributing  31.2% of International business service revenue, while M-Pesa revenue accelerated to 22.1% (24.2%*) growth, driven by double-digit expansion across all markets. The customer base increased by 12.5% to 65.7 million, reflecting the success of innovative financing options and adoption of new products such as communal savings and fuel loans.

Egypt remains a standout performer, with service revenue rising by 39.0% (39.7%*) to R9.5 billion, now accounting for 27.5% of Group service revenue in the quarter. This was driven by strong commercial momentum, enhancements to integrated connectivity and content packages, and continued traction of Vodafone Cash. Financial services revenue grew by 59.4% (60.2%*), supported by a 28.9% increase in active customers to 13.5 million. Data traffic expanded by 25.1%, with data customers up 8.9% to 33.9 million. Consistent network investment, including the roll-out of 5G services, underpinned healthy ARPU growth and reinforced Egypt’s leadership in customer experience and digital innovation.

From a mergers and acquisitions perspective, the implementation of the Maziv transaction in South Africa began on 1 December 2025, including a significant capital injection that better positions the open‑access fibre ecosystem to accelerate roll‑out and enhance customer experience, while supporting inclusive connectivity. Separately, on 4 December 2025, we announced a landmark transaction to increase Vodacom’s effective shareholding in Safaricom to 55% by acquiring 15% from the Government of Kenya and 5% from Vodafone Group Plc for a total consideration of US$2.1 billion. Subject to regulatory approvals, this transaction will result in the consolidation of Safaricom into Vodacom upon completion. Strategically, this aligns closely with Vision 2030 as it strengthens our pan‑African fintech and connectivity leadership, while unlocking significant opportunities to share best practice across Kenya, Ethiopia and our broader footprint as we drive sustainable value for customers, communities and shareholders.

Looking ahead, we remain focused on delivering our medium‑term targets, advancing financial inclusion, and executing with discipline across products and geographies. With a strong platform and a clearer line of sight to key strategic milestones, I firmly believe the Group is well positioned to capture structural growth while staying true to our purpose of connecting people to a better future. Continued execution of our strategy has the potential to create immense economic value in the markets where we operate, helping to address inequality.