Financial Performance - Group Q2 service revenue increased by 58% [3] - Europe Q2 service revenue saw a growth of 05% [3] - Group H1 Adjusted EBITDAaL grew by 68% [3] - FY26 Adjusted EBITDAaL is expected to be between €113 billion and €116 billion [3] - FY26 Adjusted FCF is projected to be between €24 billion and €26 billion [3] - The company commits to a progressive dividend policy with a 25% increase for FY26 [3] Operational Progress - VodafoneThree merger was completed on May 31, 2025, with financial results consolidated from June 1, 2025 [3] - In Germany, 350k OXG households were passed [3] - In the UK, VodafoneThree integration is off to a fast start [3] - Africa has 94 million financial services customers [3]

Core Insights - Vodacom Group Limited reported strong interim results for the six months ended September 30, 2025, highlighting resilience and agility in a stable macroeconomic environment, marking an ideal start to its Vision 2030 ambitions [1] Financial Performance - Group service revenue increased by 12.2% to R65.8 billion, with a normalized growth of 13.6%, exceeding medium-term targets for double-digit growth [2] - Total Group revenue rose by 10.9% to R81.6 billion, with a normalized increase of 12.1% [2] - Operating free cash flow surged by 71.0% to R10.0 billion, and Group free cash flow improved to R2.7 billion from a negative R1.076 billion in the previous year [3] - The net debt to EBITDA ratio decreased from 1.1x to 0.9x, and return on capital employed (ROCE) improved by 3.8 percentage points to 26.3% [3] Regional and Segment Performance - Egypt was the standout performer with service revenue growth of 42.3% (48.3% normalized) driven by strong campaigns and data traffic growth of 21.9% [4] - The International business segment reported service revenue growth of 12.2% (13.3% normalized) to R16.7 billion, with a substantial EBITDA increase of 35.0% (33.8% normalized) [5] - Services beyond traditional mobile connectivity contributed 21.8% of Group service revenue, indicating successful diversification [6] Associate Performance - Safaricom's service revenue grew by 11.1% in local currency, contributing to the Group's operating profit growth, with Group EBITDA increasing by 14.7% to R30.5 billion [7] - Headline earnings per share (HEPS) rose by 32.3% to 467 cents per share, and an interim dividend of 330 cents per share was declared, reflecting a 15.8% increase [7] Financial Services Growth - Financial services revenue grew by 20.3% (21.5% normalized) to R8.0 billion, with 93.7 million financial services customers, a 13.1% increase [8] - M-Pesa processed over US$476.8 billion in transaction value over the last year, solidifying its position as Africa's largest mobile money platform [8] Challenges in South Africa - South Africa's service revenue growth was modest at 2.2% to R31.7 billion, with EBITDA declining by 5.3% to R15.5 billion and operating profit reducing by 11.0% [10][12] - The prepaid segment faced challenges, with revenue decreasing by 1.6% to R13.2 billion and a 7.4% decline in the prepaid customer base [12] Strategic Developments - The acquisition of a 30% stake in Maziv received approval, expected to enhance network expansion [12] - The long-standing "Please Call Me" legal dispute was settled out of court, positively impacting interim results [12]