Vodacom Tanzania Plc has recorded a strong start to its 2027 financial year after posting TZS 47.3 billion in profit after tax in the first quarter ended June 30, 2026, as rising demand for data services and digital financial solutions continued to drive growth.
The latest performance marks a major improvement from the TZS 8.5 billion profit recorded in the same quarter last year, representing an increase of more than 200 percent.
The company’s revenue rose by 21.7 percent to TZS 510.9 billion, supported by increased adoption of mobile internet services, growth of M-Pesa transactions and continued expansion of its digital ecosystem.
Vodacom Tanzania Chief Executive Officer Philip Besiimire said the results reflected the impact of sustained investments in network infrastructure and digital services aimed at improving customer experience.
“We are pleased to report a strong start to the 2027 financial year, built on consistent execution of our strategy and continued investment in our network and digital capabilities,” Mr Besiimire said.
Data and M-Pesa remained the key drivers of Vodacom’s financial performance during the quarter, with both services recording double-digit growth.
Revenue from data services increased by 26.3 percent, while M-Pesa revenue grew by 26 percent, highlighting the growing role of digital connectivity and mobile financial services in Tanzania’s economy.
The company said its customer base expanded by 21.6 percent to 28.6 million, reflecting increased demand for mobile communication and digital solutions.
Growth was recorded across major service segments, with M-Pesa customers increasing by 15.5 percent, data users rising by 16 percent, and smartphone users growing by 23 percent.
Vodacom increased its investment in network improvements during the quarter, with capital expenditure rising by 94.6 percent to TZS 123.2 billion.
The funds were directed towards upgrading the company’s Radio Access Network (RAN) infrastructure and expanding high-speed broadband services to improve internet access and reliability.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 37 percent to TZS 197.3 billion, while the EBITDA margin improved to 38.3 percent from 35.3 percent recorded in the previous year.
Operating profit rose by 174.4 percent to TZS 105.8 billion, despite additional costs associated with network upgrades.
Vodacom said M-Pesa continued to strengthen financial inclusion by expanding access to digital payments, savings and lending services.
During the quarter, digital loans issued through M-Pesa approached TZS 1 trillion, representing growth of 16.5 percent.
Loans extended to small and medium-sized enterprises (SMEs) increased by 22.5 percent, accounting for more than half of total lending through the platform.
The M-Wekeza investment service also recorded strong growth, with monthly investments exceeding TZS 50 billion, nearly three times the level recorded in the previous year.
Meanwhile, the number of active M-Pesa merchants increased by 25.2 percent to more than 650,000, while monthly transaction value grew by more than 40 percent to surpass TZS 2 trillion.
The company added that M-Koba, its group savings service, continued to gain popularity, with users reaching 1.5 million and savings increasing by more than 60 percent.
Vodacom said it expects continued growth during the financial year as it focuses on expanding broadband coverage, strengthening digital financial services and improving network quality.
The company’s latest results come amid increasing demand for reliable internet connectivity and digital payment platforms, which have become important tools for businesses, consumers and financial inclusion efforts across Tanzania.
With continued investment in technology and customer-focused solutions, Vodacom Tanzania is positioning itself to benefit from the country’s growing digital economy.
