Africa’s fast-growing telecom markets have become an increasingly important engine of growth for Vodafone, helping the British telecom giant raise its earnings outlook after completing its takeover of Kenya’s Safaricom.
Vodafone on Monday upgraded its financial guidance for the year ending March 2027 after consolidating Safaricom into its accounts, saying it now expects to deliver results at the upper end of its revised forecast following a stronger-than-expected start to the financial year.
The improved outlook follows the completion of Vodacom’s acquisition of a controlling 55% stake in Safaricom, Africa’s largest telecommunications company by market value and the operator behind the continent’s most successful mobile money platform, M-Pesa.
The transaction gives Vodafone greater exposure to East Africa’s fast-growing digital payments and telecommunications markets.
The company now expects adjusted core earnings (EBITDAaL) of between €13.0 billion and €13.3 billion ($14.8 billion-$15.2 billion) for the financial year ending March 2027, up from its previous guidance of €11.9 billion to €12.2 billion, while maintaining adjusted free cash flow guidance of €2.6 billion to €2.9 billion.
