Vodacom wants 50 million more customers

Vodacom plans to massively expand its customer base as per its latest five-year plan, Vision 2030. 

Its latest financial results for the year ended 31 March 2025 marked the end of the group’s Vision 2025, with the group expanding its geographic and product diversification. 

Vodacom’s customers increased from 115.5 million in FY2020 to 211.3 million in FY2025. The group’s financial services customers rose from 53.2 million to 87.7 million, including Safaircom. 

The group’s new Vision 2030 sees it increase its customer base to 260 million and its financial services customers to 120 million. 

Vodacom Group CEO Shameel Joosub added that the group expects the contribution from beyond mobile to increase from 21% today to 30%. 

“As part of Vision 2030, we upgrade our medium-term targets for Group service revenue and EBITDA from high single-digit to double-digit growth,” said Joosub. 

The CEO was also pleased by the recent currency market stability, especially in Egypt, which bodes well for the group’s performance for the foreseeable future. 

He was also pleased with South Africa’s resilient performance and Egypt and Tanzania’s continued growth, even though extreme instability impacted Mozambique and the DRC. 

After acquiring a majority stake in Vodafone Egypt in 2022 for R41 billion, the group was pleased by the subsidiary’s performance, which saw a 45.2% increase in local currency service revenue. 

Back home, Vodacom was disappointed by the Competition Tribunal’s decision to prohibit its proposed acquisition of a stake in Maziv. The group has appealed to the Competition Appeal Court. 

“Given that fibre is a critical enabler of inclusive economic growth, we remain steadfast in our belief that this transaction holds significant public interest and pro-competitive benefits,” said Joosub. 

The group expects to invest heavily in infrastructure, with R20 billion in capital expenditure expected in the new financial year. 

Financial results

Looking at the results, the group’s South African business, while stable, only saw minimal growth in revenue. 

The group’s service revenue increased by 2.3%, led by a recovery in the prepaid segment, sustained data traffic growth of over 36%, and increasing contribution beyond mobile services.

However, the growth in service revenue could not match the relatively low 2.7% inflation figure seen in March. 

The group’s EBITDA also increased by a low 2.3% in South Africa, thanks to the successful execution of seasonal campaigns and its response to power grid instability. 

The group also invested R11.6 billion to enhance network resilience and spectrum efficiency. 

The group has also approached the Competition Commission to advance meaningful sharing opportunities with MTN, under the provisions of the government’s Energy Users Block Exemption regulation.

These regulations allow energy users to collaborate to secure a backup or alternative energy supply and reduce energy costs. 

Looking internationally, the group’s international business achieved 7.1% normalised service revenue.

Tanzania was the standout performer, achieving 20.5% service growth and EBITDA growth of 25.2% in shillings. 

In local currency, Lesotho and the DRC also increased service revenue by 10.4% and 8.2%, respectively. 

The group is also hoping for a recovery in Mozambique and a sustained resolution in the DRC, where fighting with M23 Rebels has devastated the eastern part of the country. 

The group’s total revenue only grew by 1.1% to R150 billion. Its net service revenue declined by 0.1% to R120.7 billion on a rand basis despite an 11.2% increase on a normalised basis.

The group reported headline earnings per share (HEPS) of 857 cents per share, a slight 1.3% increase from the strong second half performance. 

As per the group’s dividend policy of paying at least 75% of HEPS, the board has declared a total dividend of 620 cents per share, an increase of 5.1%.