Vodacom Tanzania FY2025 Results: Massive Profits, Strategic Growth & M-Pesa Domination

Vodacom Tanzania Plc, the leading telecom operator in the country, has released its preliminary financial results for the fiscal year ending 31 March 2025. The report paints a picture of a dynamic, digitally-driven, and profit-rich enterprise leveraging mobile money and data services to transform lives and drive national financial inclusion.

This detailed analysis dissects Vodacom Tanzania’s FY2025 performance—from revenue growth and customer acquisition to digital transformation, M-Pesa expansion, and environmental stewardship. With a 69.4% increase in net profit and TZS 1.5 trillion in service revenue, Vodacom is not only delivering value to shareholders but also cementing its leadership in East Africa’s digital economy.

Key Vodacom PLC Tanzania Financial Highlights

• Service revenue: Up 20.5% to TZS 1.516 trillion
• EBITDA: TZS 493.6 billion, up 25.2%
• Net profit after tax: TZS 90.5 billion, up 69.4%
• Free cash flow: TZS 195.4 billion, up 104.1%
• Operating profit: TZS 208.2 billion, up 55%
• Customer base: Up 15.7% to 22.6 million users

These results reflect strong execution of Vodacom’s “System of Advantage” strategy, focusing on digital financial services, customer experience, and sustainable investments.

M-Pesa: The Engine of Financial Inclusion and Growth

Vodacom’s mobile money platform, M-Pesa, continued to be the cornerstone of its revenue and innovation strategy.

M-Pesa FY2025 Performance:

• Revenue: TZS 590.0 billion, up 29.3%
• Share of service revenue: 38.9%
• Monthly processed payments via “Lipa Kwa Simu”: Over TZS 1 trillion
• Short-term loans disbursed: Nearly TZS 3 trillion

M-Pesa is more than just a digital wallet—it’s a full-fledged financial ecosystem. Services like M-Koba (group savings), M-Wekeza (wealth management in partnership with Sanlam Investments), and merchant payments through Lipa Kwa Simu showcase the platform’s versatility. Over 1.3 million people, predominantly women, used M-Koba to manage communal finances—highlighting M-Pesa’s pivotal role in gender-inclusive financial empowerment.

Data and Digital Revenue Growth

As internet access becomes essential, Vodacom has rapidly scaled its mobile data services.

• Mobile data revenue: TZS 422.2 billion, up 21.6%
• Fixed data revenue: TZS 42.0 billion, up 36.7%
• Smartphone adoption: Up 33.4%
• Data traffic: Increased by 24%, with 80% of usage on 4G

Vodacom invested TZS 175 billion to expand and upgrade its network, adding 471 new 4G sites and enhancing 286 existing ones. It also strengthened transmission capacity via the National ICT Backbone and undersea fiber-optic cable systems.

Strong Customer Acquisition and Experience Focus

Vodacom’s customer base surged by 15.7% to 22.6 million. ARPU (average revenue per user) grew by 4.3% across the year and 6.7% in Q4, showing rising per-user value.

Digital campaigns, improved service quality, and community engagement helped build brand trust. Notably, Vodacom was one of the first three companies to receive Tanzania’s official Data Processor and Controller Registration Certificate, demonstrating leadership in data privacy compliance.

Cost Management and Profit Optimization

Strategic cost-saving initiatives helped Vodacom save TZS 59.2 billion, equaling 3.9% of service revenue. These efforts helped absorb:

• TZS 487.4 billion in direct expenses (up 16.6%)
• TZS 546.3 billion in operating expenses (up 17.6%)

Despite rising costs—especially from FX volatility and infrastructure leases—Vodacom delivered a 55% increase in operating profit and a 25.2% boost in EBITDA.

Environmental and Social Sustainability

Vodacom Tanzania is aligning growth with environmental responsibility:

• Energy savings: 1.5 million kWh saved in 2025
• Carbon reduction: 698 tonnes of CO₂ emissions cut
• Reforestation: Over 50,000 trees planted via Vodacom Twende Butiama Cycling Tour

From green energy initiatives in data centers to advocating for women’s empowerment, Vodacom remains focused on long-term societal value.

Strong Cash Flow and Balance Sheet

The company generated:

• Operating free cash flow: TZS 206.9 billion (up 67.1%)
• Free cash flow: TZS 195.4 billion (up 104.1%)

Vodacom’s cash and cash equivalents stood at TZS 298.5 billion—a 34.6% increase. This allowed funding of network investments, dividends, and part-payment for the Smile Communications Tanzania acquisition.

Shareholder Returns and Market Position

With a 69.4% increase in earnings per share (EPS) to TZS 40.37, Vodacom has delivered solid value for shareholders. The company paid TZS 26.7 billion in dividends for FY2024 and is set to propose further payouts for FY2025.

Market share stats:

• Mobile market share: 31.9%
• Mobile internet users: 34%
• Mobile financial services share: 40.4%

Strategic Investments & Regulatory Developments

Vodacom Tanzania continues to explore strategic opportunities:

• Investing in AI: Tools like customer value management (CVM) to personalize experiences
• Device financing: Supporting broader smartphone adoption
• Spectrum Auction Participation: Targeting 3600–3800 MHz band in July 2025

The Tanzania Communications Regulatory Authority (TCRA) has signaled openness to progressive digital infrastructure expansion, which bodes well for Vodacom’s future growth.

FY2025 Quarterly Performance Snapshot (Q4)

Though Q4 showed a dip in net profit due to foreign exchange and tax impacts, the full-year performance remains robust.

Outlook: Poised for the Future

Vodacom Tanzania’s medium-term targets reflect continued ambition:

• Service revenue growth: Upgraded to low double-digits
• Capital expenditure: Targeting 13%–16% of revenue
• Focus areas: Mobile, M-Pesa, IoT, enterprise, fixed broadband

With strategic investments, strong partnerships, and regulatory support, Vodacom is poised to lead Tanzania’s digital future.

Final Thoughts: Why Vodacom Tanzania is a Top Investment Story of 2025

Vodacom Tanzania’s FY2025 results demonstrate how digital transformation, financial inclusion, and environmental stewardship can coexist with exceptional financial performance.

For investors, analysts, and everyday users, this is a company proving that telecoms in Africa are no longer just about connectivity—they are about empowerment, resilience, and sustainable growth.

For more insights on African fintech, telecom performance, and investment news, visit OneShekel.com.