Vodacom Group Limited (VODJ.J): Preview fiscal 1Q27 – Egypt tariff increase drive uplift; SA growth decline, but underlying momentum improving

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Vodacom Group Limited (VODJ.J): Preview fiscal 1Q27 – Egypt tariff increase drive uplift; SA growth decline, but underlying momentum improving

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25 Jun 2026 15:42:06 ET │ 13 pages

Vodacom Group Limited (VODJ.J)

Preview fiscal 1Q27 – Egypt tariff increase drive uplift; SA growth

decline, but underlying momentum improving

CITI’S TAKE Neutral

We update our model ahead of fiscal 1Q27 results. For the quarter, we Price (25 Jun 26 17:00) R151.68

expect group organic service revenue growth to improve from last quarter, Target price R160.00

primarily driven by recent tariff increases in Egypt, partially offset by a

Expected share price return 5.5% slight moderation in South Africa and International. In South Africa, we

expect postpaid tariff hikes and gradually improving prepaid trends to Expected dividend yield 4.8%

support the top line; however, growth is likely to soften sequentially Expected total return 10.3%

following strong fiscal 4Q, which benefited from timing-related uplift from Market Cap R315,167M

tariff increases. In Egypt, we expect service revenue growth to improve US$19,051M

sequentially driven from tariff increase implemented in May. Meanwhile,

the International segment should continue to report solid growth, albeit

with some moderation. Overall momentum remains strong; however, we

see this as largely priced-in. We maintain our Neutral rating and R160 Rohit ModiAC

price target. +44-20-7508-1081

rohit1.modi@citi.com

SA: improving prepaid but growth decline as 4Q benefiting from early price Carl Murdock-Smith, CFA

increase — We expect SA service revenue growth to decline marginally to 2.3% from +44-20-7986-5747

2.8% last quarter. However, this is mainly because fiscal 4Q26 benefited from the carl.murdocksmith@citi.com