Vodacom Dividend Increase Drives Shares up 4.5%

Vodacom Group shares rose approximately 4.5% to around R147 in Johannesburg trading after the company announced a higher dividend and reported strong full-year financial results.

The rally reflected renewed investor confidence in African telecom operators, particularly those benefiting from fintech expansion and rising digital adoption across the continent.

Strong earnings support dividend growth

Vodacom reported revenue of R167.7 billion for the financial year, representing growth of 10.1% compared with the previous year. Service revenue increased 11% to R133.56 billion, while EBITDA climbed 13% to R62.63 billion, exceeding the group’s medium-term targets.

Net income rose to R20.7 billion from R16.6 billion a year earlier. Headline earnings per share increased 23% to 1,053 cents.

The board declared a final dividend of 405 cents per share, up 20.9% year-on-year. Total annual dividends reached 735 cents per share, marking an 18.5% increase compared with the prior financial year.

Vodacom’s fintech business continued to deliver strong momentum. Financial services revenue grew 19.6% to R16.8 billion, while transaction values processed through the group’s digital platforms reached approximately $525.6 billion.

Customer growth strengthens regional position

The company expanded its customer base by 12% to 237.3 million users across eight African markets.

Vodacom added 26 million customers during the year, significantly exceeding its Vision 2030 growth targets. Expansion across telecommunications, fintech and digital infrastructure services drove much of the increase, with operations in Egypt contributing strongly to overall performance.

The results also reinforced the broader recovery narrative surrounding Africa’s telecom sector, as operators increasingly shift toward data services, fintech and digital ecosystems.

Strategic positioning supports outlook

Vodacom’s stake in Safaricom continues to strengthen its exposure to East African growth markets and mobile financial services.

Although competition across African telecom markets remains intense, rising smartphone penetration and digital adoption continue to support long-term demand for fintech and connectivity services.

The stronger dividend payout signals confidence from management in the company’s cash flow generation and growth outlook. Investors have increasingly viewed African telecom firms as infrastructure-driven growth assets with expanding exposure to financial services.

Vodacom shares have recovered significantly from lows near R86 in April 2024, highlighting improving sentiment toward emerging-market telecom equities.

Investors will closely monitor service revenue growth, fintech adoption and developments linked to Safaricom as indicators of future momentum.

Continued expansion in digital financial services could further strengthen profitability and reinforce Vodacom’s position as one of Africa’s leading telecom and fintech platforms.

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