Vodacom expects strong earnings growth driven by Safaricom gain

Vodacom Group has issued a trading statement projecting significant growth for its interim results period ending 30 September 2026. The company expects headline earnings per share (HEPS) to increase by between 22% and 27%, reaching a range of 570 to 593 cents.

Earnings per share (EPS) are projected to rise by between 272% and 279%, reaching a range of 1,756 to 1,789 cents. This substantial increase is attributed to a non-recurring, tax-neutral fair value gain of R23.2 billion resulting from the remeasurement of a previously held associate interest in Safaricom. This gain is an accounting consequence of Vodacom gaining control of the Kenyan operator.

The company's acquisition of a controlling stake in Safaricom remains subject to legal proceedings in Kenya. While the gain does not impact headline earnings, the group's ownership structure faces potential changes if court rulings regarding the Kenyan government's stake are upheld. Vodacom expects to release its full interim results on or about 10 November 2026.