According to its latest trading update for the quarter ending June 30, 2024, Vodacom Group has achieved a milestone by processing over $400 billion annually through its mobile wallet offerings, including Safaricom.
The JSE-listed telecommunications giant emphasized the strategic importance of financial services, which now constitute a significant portion of its revenue beyond traditional mobile services.
“I was particularly pleased with the growth of M-Pesa services, aimed at deepening financial inclusion through offerings such as loans, savings, international money transfers, and merchant services,” said Shameel Joosub, CEO of Vodacom Group.
The company reported a Group Financial Services Revenue of $178 million, driven by rapid local currency growth in Egypt and firm performance in South Africa’s Insurance and Airtime Advance segments, with an 87% increase in Egypt.
Vodacom highlighted its “super apps” — VodaPay, Vodafone Cash, and M-Pesa — as pivotal to its expansion in financial services, integrating proprietary products with partner offerings.
Despite facing foreign-exchange headwinds impacting top-line performance, Vodacom achieved a 1% revenue growth to $1.96 million in the quarter. Service revenue from “beyond mobile services,” including digital and financial services, contributed significantly to overall revenue, amounting to R6 billion.
Joosub outlined Vodacom’s strategic investments, noting a capital expenditure of $103 million in the quarter to enhance customer experience, with a projected total of $623 million for the fiscal year.
In South Africa, Vodacom saw a 1.9% growth in service revenue, supported by increased data traffic and expansion in “beyond mobile services,” contributing $140.9 million to a total service revenue of $829.5 million.
Looking forward, Vodacom remains focused on expanding its financial services footprint, aiming to achieve a targeted contribution of 25-30% from “beyond mobile services” over the medium term. Egypt emerged as a standout performer in the quarter, registering a 433.7% revenue increase in local currency.
The company’s robust performance underscores its commitment to leveraging digital innovations to drive financial inclusion and enhance service offerings across its markets.
