Vodacom Earnings Surge Amid Safaricom Acquisition Legal Battle

Vodacom Group reported a 25.7% increase in headline earnings per share to 5.87 rand for the six months ending September 30, 2026. Group revenue rose 25.6% to 102.5 billion rand, while financial services revenue surged 99% to 15.9 billion rand, driven largely by the M-Pesa platform. The company declared an interim dividend of 355 cents per share, a 7.6% increase.

Growth was fueled by the consolidation of Safaricom, which transitioned from an associate to a subsidiary after Vodacom acquired a 55% stake for $1.6 billion in June. The group expanded its reach to 250 million customers, with Egypt and Kenya serving as primary growth engines alongside a recovery in the South African prepaid market and expansion in Tanzania, Lesotho, and the Democratic Republic of Congo.

Despite the financial gains, the acquisition faces legal challenges in Kenya. The High Court previously declared the purchase of the Kenyan government's 15% stake null and void, citing a lack of public participation and the concealment of material information. Both Vodacom and the Government of Kenya are appealing this ruling. The Court of Appeal in Nairobi has ordered that the status quo be maintained, leaving Vodacom as the registered shareholder pending a final decision.