Vodacom Mixed FY26 Results Reassuring on South African Growth

Vodacom reported mixed FY26 results where strong local performance in South Africa and International markets was offset by FX headwinds and weaker Egypt revenues.

Key Takeaways

• 1.South Africa operations showed signs of recovery, beating consensus on service revenue and EBITDA after several quarters of downgrades.
• 2.Egypt service revenue decelerated due to price-rise annualization and FX pressures, resulting in a miss against consensus estimates.
• 3.Management updated mid-term guidance, narrowing the capex intensity range and introducing a new target for double-digit operating free cash flow growth.

Table of Contents

• In the detail
• Valuation and risks
• Key upside/downside risks to our investment thesis and price target include:
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• Global product; distributing entities
• General disclosures

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