DAR ES SALAAM, 24 July 2026 – Vodacom Tanzania Plc has kicked off its 2027 financial year with an impressive performance, reporting a net profit after tax of TZS47.3 billion for the quarter ended 30 June 2026, more than tripling the TZS8.5 billion recorded during the same period last year.
The strong financial results were driven by robust growth in the company's data and M-Pesa businesses, reinforcing Vodacom's position as one of Tanzania's leading digital communications and financial services providers.
Service Revenue Climbs 21.7%
Vodacom's service revenue increased by 21.7% year-on-year to TZS510.9 billion, supported by continued demand for mobile data and digital financial services.
The company also posted significant improvements across key profitability indicators:
- EBITDA increased by 37.0% to TZS197.3 billion, with the EBITDA margin improving by 5.3 percentage pointsto 38.3%.
- Operating profit surged 174.4% to TZS105.8 billion, benefiting from strong revenue growth and a lower comparative base following last year's temporary Radio Access Network (RAN) modernisation costs.
- Operating free cash flow recovered strongly, recording a positive TZS18.0 billion, compared to an outflow of TZS13.8 billion during the corresponding quarter last year.
Continued Investment in Network Expansion
Vodacom nearly doubled its capital investment during the quarter, with capital expenditure rising 94.6% to TZS123.2 billion.
The investment supports the ongoing rollout of broadband infrastructure, expansion of network coverage and the company's nationwide Radio Access Network (RAN) modernisation programme aimed at improving service quality and customer experience.
Customer Growth Remains Strong
The company's commercial performance remained robust across all major customer segments.
Vodacom's total customer base grew by 21.6% to 28.6 million customers, while:
- M-Pesa customers increased by 15.5%
- Data customers grew by 16.0%
- Smartphone users rose by 23.0%
The growth reflects increased smartphone adoption, sustained broadband investments and affordable device financing partnerships that continue to expand digital inclusion across Tanzania.
Data and M-Pesa Continue to Lead Growth
Vodacom's digital ecosystem remained the company's strongest growth engine.
During the quarter:
- Data revenue increased by 26.3%
- M-Pesa revenue rose by 26.0%
The company also successfully completed the M-Pesa platform modernisation programme, migrating from its legacy platform to a next-generation financial technology platform designed to deliver:
- Higher transaction capacity
- Improved system resilience
- Enhanced transaction security
- Greater scalability for future digital financial services
Digital Financial Services Reach New Milestones
Vodacom reported continued expansion across its digital financial services portfolio.
Highlights include:
- Quarterly digital lending disbursements approaching TZS1 trillion, representing 16.5% growth year-on-year.
- SME lending increasing 22.5%, accounting for more than half of all loans disbursed.
- Monthly investments through M-Wekeza exceeding TZS50 billion, nearly three times higher than a year earlier, with the service now available to merchants.
- Active merchants growing 25.2% to more than 650,000.
- Monthly merchant transaction values surpassing TZS2 trillion, an increase of more than 40%.
- Community savings through M-Koba expanding by more than 60%, serving approximately 1.5 million users.
CEO Highlights Strong Start to FY2027
Vodacom Tanzania Chief Executive Officer Philip Besiimire said the company's performance reflects successful execution of its long-term strategy.
"I am pleased to report a strong start to the financial year 2027, underpinned by disciplined execution of our strategy and sustained investment in our network and digital capabilities."
He added that Vodacom remains committed to strengthening Tanzania's digital economy through continued investment in broadband connectivity, financial technology innovation and customer-focused digital services.
Positive Outlook
Looking ahead, Vodacom Tanzania says it remains confident about sustaining growth throughout the remainder of the financial year despite external economic uncertainties.
The company plans to continue investing in:
- Broadband coverage expansion
- Radio Access Network (RAN) modernisation
- Advanced digital financial services
- Innovation and customer experience
These investments are expected to further strengthen service quality, support financial inclusion and enhance the company's long-term competitiveness in Tanzania's telecommunications and fintech sectors.
About Vodacom Tanzania Plc
Vodacom Tanzania Plc (DSE: VODA) is one of Tanzania's leading telecommunications and financial services companies, providing mobile voice, data, digital connectivity and mobile financial services to millions of customers across the country through its extensive telecommunications network and the M-Pesa platform.
Source: Vodacom Tanzania Plc Press Release.
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