Cape Town – Vodacom Group expects headline earnings per share (HEPS) to increase by between 22% and 27% for the six months ended 30 September 2026, supported by strong financial performance during the first half of its 2027 financial year.
In a trading statement released through the Johannesburg Stock Exchange’s (JSE) Stock Exchange News Service (SENS) on Wednesday, the telecommunications group said it was finalising its interim results and anticipated that its performance would align with its medium-term growth ambitions.
“Vodacom is finalising its interim results for the six-month period ended 30 September 2026 (FY1H27) and expects to report strong headline earnings per share (HEPS) growth,” the company said.
The group expects HEPS to rise from 467 cents reported in the corresponding period last year to between 570 cents and 593 cents.
Earnings per share (EPS) are also expected to increase sharply, rising by between 272% and 279% from 472 cents to a range of 1 756 cents to 1 789 cents.
Different measure of performance
However, Vodacom attributed the substantial increase in EPS partly to a once-off accounting gain linked to its investment in Safaricom.
According to the statement, EPS was positively affected by a “tax-neutral and non-recurring fair value gain of R23.2 billion or 1 199 cps” arising from the remeasurement of a previously held associate interest in Safaricom.
The company clarified that the gain did not affect headline earnings or HEPS, meaning the anticipated growth in headline earnings reflects a different measure of performance from the exceptional increase expected in EPS.
Vodacom’s trading statement was issued in accordance with the JSE Listings Requirements, which require listed companies to publish an earnings update when they reasonably expect their results to differ by at least 20% from the previous corresponding period.
The group cautioned that the financial information underpinning the trading statement “has not been reviewed or reported on by the Group’s external auditors”.
Vodacom expects to release its interim results for the six months ended 30 September 2026 on SENS on or about 10 November 2026.
Public participation
The statement was issued from Midrand on 28 October 2026, with Investec Bank Limited acting as sponsor.
The earnings update comes amid uncertainty surrounding Vodacom’s R34.52 billion acquisition of an additional 20% effective stake in Safaricom, which increased its effective shareholding to 55%.
However, the deal faces a legal challenge in Kenya. According to Business Daily Africa, Kenya’s High Court ruled in September that the government’s sale of a 15% stake in Safaricom to Vodacom was invalid, citing concerns about public participation and the disclosure of key transaction documents.
The court ordered the shares to be returned to the Kenyan government, prompting Vodacom and other affected parties to appeal.
In October, Kenya’s Court of Appeal agreed to fast-track the appeal while maintaining the status quo. Vodacom therefore remains the registered holder of the shares acquired from the government pending the outcome of the proceedings, according to BusinessTech.
Vodacom’s interim financial results for the six months ended 30 September 2026 are expected to be released on or around 10 November.
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Compiled by Betha Madhomu
