VOD 1Q27 update – Egypt ahead of our expectations, early signs of SA improvement

Research evidence excerpt

VOD 1Q27 update – Egypt ahead of our expectations, early signs of SA improvement

Update

July 27, 2026 07:35 AM GMT

RMB Morgan Stanley Proprietary Limited+MVodacom Group Ltd | Europe Viwe Kupiso

Equity Analyst

VOD 1Q27 update – Egypt Viwe.Kupiso@rmbmorganstanley.com +27 11 587-0809

Vodacom Group Ltd (VODJ.J, VOD SJ)

EEMEA - Telecoms | South Africaahead of our expectations, early

Stock Rating Equal-weight

Industry View No Rating

Price target ZAc 16,500signs of SA improvement Shr price, close (Jul 24, 2026) ZAc 15,372

52-Week Range ZAc 16,497- 12,831

Mkt cap, curr (mn) ZAR 305,595

AlphaSignals Earnings Reaction Net debt (03/27e) (mn)* ZAR 54,544

EV, curr (mn)* ZAR 383,317

Strengthens our thesis Modest upside Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month * = GAAP or approximated based on GAAP

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways:

(+) 1Q27 service revenue growth a beat versus our expectations

(+) SA service revenue growth tracking below our FY27e expectation +2% vs +2.5%

but Prepaid turnaround positive

(+) Egypt clear driver of beat – 1Q27 service revenue +15.7% materially higher than

our FY27 expectation of +5.9%

Key considerations for the remainder of the FY27: sustainability of Egypt growth

acceleration in light of elevated inflation, can SA sustain its strong Data revenue

growth.

Vodacom provided its 1Q27 trading this morning. The trading update provides detail

only on revenue and not profits but was a beat versus our expectations.

Egypt was the main driver of the beat. Service revenue grew 15.7% reported and

32.8% in local currency, well ahead of our FY27e expectation of 5.9% (ZAR) and

20% (EGP) growth. Momentum was driven by tariff increases, strong data traffic