As telecommunications giant Vodacom Group wraps up the quarter ended June 30 with growth, the completion of its acquisition of a controlling stake in Safaricom marked a defining moment for the group.
In a trading update for the quarter ended June 30, Vodacom Group CEO Shameel Joosub on Monday highlighted that the Safaricom transaction was completed effective June 30, increasing the company’s 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, adding that the transaction also materially expands the scale of its financial services footprint, increasing the contribution of financial services to group service revenue from 13% to more than 22%.
“We are now 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,” he said.
Reflecting the stronger growth profile, Vodacom upgraded its medium-term earnings before interest, taxes, depreciation and amortisation and operating free cash flow growth targets from double-digit to early-teens growth.
