Egypt has again proved to be a star performer for Vodacom as the group’s investments into spectrum and networks bear fruit. A strong overall group performance in the June quarter has also seen Vodacom upgrade its earnings and revenue targets.The Egyptian business grew service revenue by 32.8% in local currency in the quarter to end-June, as Vodacom’s overall revenue rose 5.9% to R42.4bn, impacted by translation effects from the stronger rand, the group said on Monday. On a normalised basis, which presents performance on a comparable basis and adjusts for foreign currency fluctuation on a constant currency basis and excludes the impact of merger, acquisition and disposal activities, group revenue was up 11.4%.Group service revenue grew 6.3%, with normalised growth accelerating to 12.6%.South African service revenue increased 2%, supported by improved prepaid performance, while Egypt grew service revenue 32.8% in local currency, with Egyptian financial services revenue up 73%.International business service revenue increased by 4.1% in rand, with normalised growth of 14%, Vodacom said in a statement on Monday.Group financial services revenue increased by 17.8% to R4.5bn, while normalised growth accelerated to 27%. Vodacom transacted $547.9bn through its mobile money platforms, including Safaricom, over the past 12 months, it said.CEO Shameel Joosub said the quarter marked a defining moment for Vodacom with the completion of its acquisition of a controlling stake in Safaricom, increasing its shareholding from 35% to 55%.“This strategically important transaction represents a major milestone in our Vision 2030 journey, significantly enhancing the group’s scale, diversification and long-term growth prospects,” he said.Vodacom completed its acquisition of Kenya’s Safaricom, East Africa’s largest mobile operator, in a R36bn deal after winning a major court case in that country; the acquisition was effective from June 30. Through the deal, the JSE-listed cellphone provider also takes control of the continent’s best-known mobile money business, M-Pesa. It adds Ethiopia, in addition to Egypt, as another high-growth potential market for the group.“We are entering a new phase of growth, supported by a more balanced portfolio, broader earnings drivers and increased exposure to some of Africa’s most attractive opportunities in connectivity, digital services and financial inclusion,” said Joosub. Reflecting this stronger growth profile, the group has upgraded its medium-term earnings before interest, tax, depreciation and amortisation (ebitda) and operating free cash flow growth targets to early-teens growth.“In addition to these upgraded targets, the strength of our diversified portfolio and sustained operational momentum across the business gives us the confidence to raise our Vision 2030 group revenue ambition from more than R200bn to more than R300bn,” Joosub added.“The transaction also materially expands the scale of our financial services footprint, increasing the contribution of financial services to group service revenue from 13% to more than 22%, further reinforcing our leadership in African fintech,” he said.Following the completion of the Maziv and Safaricom transactions, Vodacom has shaped its strategy for the future, Joosu added.After four years of fighting to get their fibre merger over the line, Vodacom and Remgro received final approval from South Africa’s telecoms regulator in November last year. The Independent Communication Authority of South Africa finally approved the transaction, which was implemented on December 1.“Our focus shifts to unlocking the full potential of our portfolio through disciplined execution, innovation and capital allocation. Guided by Vision 2030, we are well positioned to deliver sustainable growth and attractive returns.” Business Day