Vodacom gets a R23.2 billion gift from the company it wants to take over for R34.52 billion

Vodacom expects its earnings per share (EPS) for the first half of the 2027 financial year to skyrocket by as much as 279%.

This was due to the impact of a tax-neutral and non-recurring fair value gain of R23.2 billion on the re-measurement of Vodacom’s interest in Safaricom.

Excluding this gain, Vodacom still performed well, with its headline earnings per share (HEPS) set to grow by up to 27%.

This was revealed in a trading statement released on Wednesday, 28 October, in which Vodacom outlined its earnings expectations for the six months through September 2026.

The telecoms giant said it expects to report strong HEPS growth and interim results consistent with its medium-term growth ambitions.

Vodacom projects the following increases in its earnings compared to the first half of the 2026 financial year:

• EPS: increased by between 272% and 279%
• HEPS: increase by between 22% and 27%

“EPS in the current period was positively impacted by a tax-neutral and non-recurring fair value gain of R23.2 billion or 1,199 cents per share arising on the remeasurement of a previously held associate interest in Safaricom,” Vodacom explained.

“The fair value gain did not impact headline earnings, and it therefore did not impact HEPS.”

This gain from Safaricom comes as Vodacom is in the process of acquiring a larger stake in the Kenyan mobile network operator in a deal valued at R34.52 billion.

Vodacom is seeking to increase its effective stake in Safaricom to 55% through a 20% acquisition: 15% from the Kenyan government and 5% from Vodafone.

This acquisition was completed in June 2026, but in September, a Kenyan High Court ordered that the 15% stake Vodacom acquired from the Kenyan government be returned. Vodacom has appealed this ruling.

Vodacom’s 2026 results

This positive trading update comes a few months after Vodacom also reported a strong performance for the 2026 financial year.

In FY26, Vodacom’s customer base increased by 12.3% to reach 237.3 million clients, with revenue up 10.1% to R167.7 billion.

The group’s EBITDA rose by 12.8% to R62.6 billion, while HEPS were up 23% to 1,053 cents.

These results were so strong that Vodacom upped its medium-term growth targets, contained in its Vision 2030 strategy.

This strategy is aimed at accelerating Vodacom’s growth, deepening its impact across Africa, and delivering value for shareholders.

Its updated targets will now see the group aim to reach 275 million customers by 2030, up from its initial target of 260 million.