South African mobile operator Vodacom Group reported on Wednesday a near thirteen percent increase in third-quarter service revenue, supported by robust growth across its African operations, particularly in Egypt and the Democratic Republic of Congo (DRC).
The group, majority-owned by Britain’s Vodafone, said service revenue for the three months ending December thirty-first rose to thirty-four point six billion rand, equivalent to approximately two point seventeen billion dollars, compared with the same period in 2024. On a normalised basis, group service revenue grew by thirteen point six percent, a pace Vodacom described as tracking favourably against its medium-term target.
“The quarter benefited from sustained growth in Egypt and our international business, including strong performance in the DRC, while South Africa delivered modest but satisfactory revenue growth against a particularly strong comparative quarter last year,” Vodacom Group Chief Executive Officer Shameel Joosub said.
Vodacom’s financial services segment remained a key driver of growth, posting a twenty-four point seven percent rise in service revenue to four point five billion rand. Joosub highlighted the performance of the company’s mobile money platforms, including Kenya’s Safaricom, which processed five hundred point seven billion dollars in transaction value over the past twelve months. Including Safaricom, Vodacom surpassed one hundred million financial-services customers during the quarter, underscoring the strategic role of mobile payments in revenue growth.
In South Africa, Vodacom’s home market, service revenue increased by one point four percent to sixteen point four billion rand, despite ongoing challenges in the consumer environment. The growth was supported by a two point six percent rise in contract revenue, reflecting steady demand from postpaid customers. Prepaid revenue, however, remained under pressure due to weak consumer spending and promotional pricing, according to Joosub.
International operations drove significant gains, with service revenue rising twelve point six percent across the continent. Growth in Egypt was particularly notable, with a thirty-nine percent surge in service revenue. Egypt now accounts for twenty-seven point five percent of Vodacom Group’s total service revenue, reflecting the strategic importance of the North African market to the group’s overall performance.
Vodacom’s performance underscores the diversification of its revenue base, with strong contributions from financial services and international markets helping to offset slower growth in South Africa’s consumer segment. The company’s focus on mobile money and digital services has expanded its customer reach, with adoption accelerating in key African markets.
The quarter’s results come amid a challenging macroeconomic backdrop, including slower economic growth in South Africa, rising living costs, and competitive pressure in the telecommunications sector. Despite these headwinds, Vodacom maintained operational stability, leveraging international expansion and digital platforms to drive both service revenue and customer engagement.
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Joosub emphasized that the results reflect a medium-term strategy focused on broadening Vodacom’s footprint across Africa, enhancing digital offerings, and building financial services capacity. “Our continued expansion into international markets and growth in financial services demonstrate that Vodacom is well-positioned to capture new opportunities across the continent,” he said.
The group’s performance highlights the resilience of African mobile operators in diversifying revenue streams beyond traditional voice and data services, with mobile money and digital platforms emerging as key growth engines. Vodacom’s results also illustrate the increasing importance of markets outside South Africa, particularly in North and East Africa, for sustaining revenue growth.
Looking ahead, Vodacom indicated that it expects continued growth from its international operations and financial services segment, while South Africa’s market remains steady but competitive. With over one hundred million financial-services users and ongoing investments in digital infrastructure, Vodacom is positioning itself for sustained growth across the continent in the coming quarters.
