Vodacom Group reported a revenue increase of 14.8% to ZAR30.7 billion (US$1.76bn) driven by the recent acquisition of Vodafone Egypt.

Vodacom Group CEO Shameel Joosub said in a statement, Vodafone Egypt was consolidated into the group on December 8 last year, contributing over ZAR1.8 billion to service revenues, a “key factor” alongside currency gains and “operating model resilience”, for its positive results.

Group service revenue increased by 14.8% year-on-year from ZAR20.6 billion to ZAR23.4 billion, “despite ongoing financial market volatility and weaker prospects for the global economy,” said Joosub.

He added the revenue growth « underscores the ongoing resilience of the Group’s portfolio at a time when economic uncertainty prevails in the face of the war in Ukraine and the supply chain impacts of the Covid-19 pandemic.” 

In other financial highlights, service revenue in South Africa grew 3% to ZAR15.4 billion on the back of strong performance in prepaid mobile, while international service revenue grew 18% to ZAR6.9 billion, driven by strong data demand and a weak rand.

Financial services revenue surged 30.6% to ZAR2.6 billion largely due to the demand for services on its M-Pesa platform across its footprint, and double-digit growth in insurance and airtime advance sales in South Africa. The company noted financial services “remains a clear strategic priority” as it proved to be a fast-growing contributor to revenues.  

The company also highlighted its spectrum acquisitions in Tanzania and Mozambique, in what seems to be hints for further capex this year to bolster service quality across its footprint.

Vodacom completed its acquisition of Vodafone Egypt in December after speculation on the future of the unit had been up in the air since talks with STC fell through.