Vodacom Group Lifts Midterm Targets on Growth Across All Key Regions

By Najat Kantouar

Vodacom Group raised its medium-term targets after it reported higher revenue for its fiscal first quarter driven by growth across all its key regions.

The South Africa-based telecommunications company--which is majority-owned by Vodafone Group--now expects medium-term earnings before interest, taxes, depreciation, and amortization to grow early-teens, up from previously guided double-digit growth. It also anticipates free cash flow to grow early-teens from double-digit growth previously.

It still projects double-digit growth in service revenue and capital expenditure of 13.5% to 14.5% as a percentage of group revenue.

"In addition to these upgraded targets, the strength of our diversified portfolio and sustained operational momentum across the business gives us the confidence to raise our Vision 2030 Group revenue ambition from more than 200 billion South African rand ($11.88 billion) to more than 300 billion South African rand," Chief Executive Shameel Joosub said.

For the fiscal first quarter, revenue for the three months through June rose to 42.40 billion South African rand from 40.03 billion rand for the same period a year earlier.

Service revenue--a closely-watched metric in the telecom sector--grew 6.3% on a reported basis to 34.29 billion rand. South Africa service revenue was up 2%, while the international segment increased 4.1% on reported basis.

Vodafone Egypt service revenue climbed to 9.83 billion rand from 8.495 billion rand a year earlier.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

July 27, 2026 02:02 ET (06:02 GMT)