Vodacom Group Limited (VDMCY) Q2 2027 Earnings Call Transcript
Vodacom Group Limited hosted its earnings conference call on November 10, 2026, to review the company’s financial outcomes for the six-month period ending September 30, 2026. The session featured insights from Chief Executive Officer Mohamed Shameel Joosub, alongside Group Chief Financial Officer Raisibe Morathi and Head of Investor Relations JP Davids. During the call, leadership referenced a previously released video presentation that detailed the firm’s recent operational progress and its ongoing efforts to meet the objectives outlined in its Vision 2030 strategy. Joosub characterized the period as one of the company’s most successful first-half performances to date, noting that the results were driven by broad-based growth across the entire group.
Broad Growth Across the Group
The telecommunications giant reported that its financial results for the half-year exceeded established targets across several key areas. Specifically, the company achieved higher-than-anticipated growth in service revenue, earnings before interest, taxes, depreciation, and amortization (EBITDA), and operating free cash flow. This financial success was mirrored by a substantial increase in the company’s reach, with the total customer base reaching 215 million. Management emphasized that serving 0.25 billion customers throughout its African footprint represents a major milestone, demonstrating the significant scale the company has managed to build over recent years.
THE Safaricom Acquisition Details
A central focus of the reporting period was the significant transaction involving Safaricom, which executives identified as a transformative event for the group. Vodacom moved to a controlling position in the entity by raising its shareholding from 35 percent to 55 percent. The total cost for this increased stake amounted to ZAR 35 billion. To facilitate this, Vodacom directed ZAR 26 billion to the Kenyan government in exchange for a 15 percent stake in Safaricom. Furthermore, the company paid ZAR 9 billion to Vodafone to acquire an additional 5 percent interest. Because of this shift in ownership, Vodacom began consolidating Safaricom’s financial performance into its group results during the second quarter.
Legal Proceedings and Court Dates
While the financial consolidation has commenced, the Safaricom deal is still navigating the legal system in Kenya. The company noted that the transaction remains subject to ongoing judicial processes in that country. A key update is expected on November 19, when representatives are scheduled to appear before the appeals court to determine a specific date for a future hearing. Despite these pending legal matters, the executive team remains focused on the broad-based growth observed across its various business segments and the strategic advantages provided by the Safaricom acquisition. The company views the consolidation as a vital step in its long-term expansion across the continent.
Source: seekingalpha.com · 2026-11-14