Vodacom Group expects a sharp surge in basic earnings per share for the six months ending 30 September 2026, driven by a once-off, non-cash gain of R23.2 billion following its accounting consolidation of Kenya’s Safaricom.
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According to a trading statement issued on Wednesday, the once-off gain stems from the required fair-value remeasurement of Vodacom’s previously held 35% associate interest in Safaricom. The revaluation occurred after Vodacom completed the acquisition of an additional 20% stake on 30 June 2026, taking 15% from the Kenyan government and an effective 5% from parent company Vodafone Group, to secure a controlling 55% majority share.
Key financial metrics for the interim period include:
- Earnings Per Share (EPS): Projected to rise between 272% and 279%, reaching 1,756c to 1,789c per share.
- Headline Earnings Per Share (HEPS): Main operational profit measures, which exclude capital remeasurements, are expected to grow between 22% and 27% (570c to 593c per share).
- Tax Treatment: The R23.2 billion gain is tax-neutral and will not impact headline operational earnings.
The accounting adjustment arrives amid ongoing legal proceedings in Nairobi. In September 2026, Kenya’s High Court ruled the government’s 15% stake sale unconstitutional, ordering the shares returned to the state.
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On 13 October 2026, the Court of Appeal granted a stay of execution, preserving the status quo and leaving Vodacom subsidiary Vodafone Kenya as the registered holder pending an expedited appeal. Should the High Court ruling be upheld on appeal, Vodacom’s total stake would drop to approximately 40%, stripping the operator of its majority control.
Vodacom is scheduled to publish its full interim financial results on 10 November 2026.
