Vodacom reports strong results, dividend boost
DAR ES SALAAM: Vodacom Tanzania Plc has announced a strong financial performance for the year ending March, resulting in a significant dividend payout.
The board of directors has approved a final dividend of 11.93 per share, representing half of the company’s profit after tax.
This substantial dividend highlights Vodacom’s commitment to delivering value to shareholders while maintaining a solid financial position.
Vodacom Chairman, Judge (rtd) Thomas Mihayo attributed the company’s success to resilience and strategic execution.
He pointed to investments in infrastructure and innovative products, bolstered by improved government-business dialogue and regulatory certainty.
“The removal of the levy on peer-to-peer mobile money transactions is a key example of this positive change,” Judge Mihayo said.
The company’s annual report reveals impressive growth metrics: a 16.9 percent increase in its customer base to 19.6 million, a 15.1 percent rise in data users to 10.1 million, a nearly 20 percent increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), a 65 percent surge in operating profit, and a net profit after tax of 53.4 billion/-.
These results are attributed to a comprehensive cost optimization program that preserved high customer experience standards while achieving significant financial growth.
Vodacom Tanzania Managing Director, Philip Besiimire cited notable regulatory developments, such as the removal of levies on peer-to-peer transfers and reduced right-of-way fees, as factors that have provided valuable policy certainty.
“This has encouraged us to confidently plan and invest in the future,” Besiimire said.
Vodacom’s M-Pesa service continues to be a cornerstone of its success, with 10 million active users contributing to a 27.8 percent increase in revenue and a 36 percent rise in total value transacted.
“With 10 million active M-Pesa customers, we have solidified our market leadership with a 30.5 percent customer market share,” Besiimire noted.
Aligning with its purpose of ‘connecting for a better future,’ Vodacom invested 170.1 billion/- in network expansion and IT infrastructure modernization.
The company is also committed to social impact through initiatives like M-Kulima, connecting over 3 million smallholder farmers, and a new energy transformation project aimed at reducing its carbon footprint.
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Despite external challenges, including geopolitical uncertainties and local economic conditions, Vodacom remains dedicated to creating sustainable value and capitalizing on growth opportunities in Tanzania.
