South Africa’s biggest mobile operator Vodacom aims to accelerate group core profit growth into a double-digit rise from 7.8% in its latest annual results, with more customers and targeted financial services growth.
Chief Executive Shameel Joosub and Chief Financial Officer Raisibe Morathi hosted shareholders and potential investors to share the operator’s “Vision 2030”, where they laid out medium-term plans to grow on the continent.
The targeted normalised group earnings before interest, tax, depreciation and amortization (EBITDA) growth of double-digits for 2025 to 2030 is an upgrade from the existing target of high single-digit growth for 2024 to 2027.
In its latest results for the year ended March 31, Vodacom reported group EBITDA growth of 7.8% on a pro-forma basis. On a reported basis, EBITDA grew by 24.3%.
According to presentation slides on its website, future growth will be supported by an increase of 50 million customers to reach 260 million customers across eight African countries by 2030. It also expects to add more than 35 million financial services customers from the current 85 million as smartphone penetration grows from 63% to 75%.
Mobile operators have been expanding in financial services across Africa, where a large part of the population does not have good access to traditional banking. They see fintech and digital services as quick revenue generators.
Vodacom, majority-owned by British Vodafone, is targeting financial services revenue growth of between 15% and 20% by 2030, as it scales beyond core financial services, introducing products and services such as wealth management.
Overall, full-year group revenue is seen accelerating to just over 200 billion rand ($10.80 billion) by 2030, from 151 billion rand in 2025, according to the presentation slides. Reuters