Vodacom, the pan-African mobile operator, saw its recent financial year revenue grow by 26% to R151 billion ($8 billion), mainly driven by its Egypt operations. Vodacom acquired a 55% controlling stake in Vodafone Egypt from parent company Vodafone for R41 billion in April 2022.
According to Vodacom’s year-end financial results, Vodafone Egypt now services 48.3 million customers who contribute one-quarter of the Vodacom Group’s revenue and 25% of operating profit. Revenue from Vodacom Egypt’s financial services increased by 107%, with a transaction value of over 1 trillion Egyptian pounds.
Vodacom has in the past told shareholders that it sees the Egypt market as a short-term revenue driver. Recent results show that the telco is flipping its acquisition successfully. The operations also recorded increases in revenues from the new services segment, Vodacom Cash superapp as well as the subscriber base.
“We are encouraged by the meaningful steps taken by Egypt’s government to support economic growth through foreign direct investment and foreign exchange liquidity,” Vodacom said in a statement to shareholders.
To further drive the growth of Egypt operations, Vodacom invested R1 billion into Vodacom Egypt’s operations. Despite the good performance of its operations, Vodacom took a revenue hit due to the devaluation of the Egyptian pound in early 2024.
Vodacom Egypt’s performance is perhaps fresh air for the telco’s stakeholders. Vodacom’s other market entry, is an ambitious drive into Ethiopia via Vodacom-owned Safaricom, is not going very well. According to Vodacom, the Ethiopia operations recorded a loss of R471 ($26 million) million in the past financial year.