By Our Reporter
Vodacom Tanzania’s net profit nearly tripled to TZS117.8 billion in the six months to September 2026, driven by increased use of mobile money and internet services, highlighting the growing contribution of digital transactions to the telecommunications company's earnings.
The company’s net profit rose by 182.7 percent, while service revenue increased by 20.8 percent to TZS1.067 trillion, according to financial results released on November 6, 2026.
M-Pesa remained a major revenue driver, with earnings from the mobile financial service increasing by 26.2 percent to TZS443.3 billion. Mobile data revenue also grew by 24.6 percent to TZS319.2 billion.
The figures point to the growing importance of digital financial services and internet connectivity in Tanzania, where mobile platforms are increasingly used for payments, money transfers and access to online services.
Vodacom Tanzania said the growth in data revenue was partly supported by a 15.3 percent increase in smartphone users and higher 4G traffic, following the expansion of its combined 4G and 5G network coverage.
M-Pesa recorded similarly strong growth, with both the value and volume of transactions increasing by nearly 40 percent during the reporting period.
The company invested TZS246 billion in network and technology infrastructure during the six months, including commissioning an upgraded M-Pesa platform intended to handle rising transaction volumes and improve service reliability.
Chief Executive Officer Philip Besiimire said the performance reflected increased customer numbers and usage of the company's services, alongside continued investment in its network.
"This half-year shows what happens when growth and purpose move together. More Tanzanians chose us, they used more of what we offer, and that showed up in revenue, profit and cash, all while we kept investing in the network and the M-Pesa platform," he said.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 33.1 percent to TZS425.8 billion, while its EBITDA margin improved by 4.2 percentage points to 39.5 percent.
Operating free cash flow rose by 64.3 percent to TZS90.3 billion, despite a 63.1 percent increase in capital expenditure. The net profit margin also improved by 6.3 percentage points to 10.9 percent.
Beyond conventional voice and data connectivity, digital and financial services accounted for 47.9 percent of total service revenue, an increase of nearly two percentage points.
The shift reflects the expanding role of mobile financial services in the company's business model as demand for digital transactions and other technology-enabled services grows.
Vodacom Tanzania Finance Director Hilda Bujiku said the results demonstrated stronger profitability and cash generation despite increased spending on infrastructure.
"Our results demonstrate strong and diversified revenue growth, improved profitability and stronger cash generation, despite a significant increase in investment. This performance strengthens our capacity to invest in the business and deliver shareholder returns," she said.
The improved financial performance also supported shareholder returns. Ms Bujiku said the company paid its final dividend for the 2025/26 financial year on October 15, amounting to TZS23.91 per share, with a total payout of TZS53.6 billion.
The latest results place mobile money and data services at the centre of Vodacom Tanzania's growth strategy, while the scale of infrastructure spending signals continued investment in network capacity to support increasing demand for digital services.