Tanzania’s Largest Telecom Operator Posts 200% Profit Surge to TZS 47.3 Billion in Q2 2026, Driven by Data and Mobile Money

Tanzania’s largest telecom operator, Vodacom Tanzania Public Limited Company (DSE: VODA), reported net profit after tax of TZS 47.3 billion for the quarter ended 30 June 2026, up more than 200% from TZS 8.5 billion a year earlier.

The result was driven by double-digit growth in data and M-Pesa services, which lifted service revenue 21.7% to TZS 510.9 billion in the quarter.

Earnings before interest, tax, depreciation and amortisation rose 37.0% to TZS 197.3 billion, with the EBITDA margin expanding by 5.3 percentage points to 38.3% on the back of strong revenue growth and continued efficiency gains.

Operating profit climbed 174.4% to TZS 105.8 billion, boosted by a lower prior-year comparative base that had been weighed down by temporary costs linked to the company’s radio access network modernisation programme.

Operating free cash flow swung to a positive TZS 18.0 billion from an outflow of TZS 13.8 billion in the same quarter last year, even as capital expenditure nearly doubled, rising 94.6% to TZS 123.2 billion, as the company pressed ahead with network modernisation and broadband expansion.

Vodacom’s customer base expanded 21.6% year-on-year to 28.6 million subscribers, with M-Pesa customers increasing 15.5% and data customers rising 16.0%, while the number of smartphone users climbed 23.0% on the back of sustained broadband investment and device-affordability partnerships.

Revenue from data services grew 26.3% during the quarter, while M-Pesa revenue increased 26.0%, underscoring the growing contribution of digital connectivity and mobile financial services to the company’s overall top-line performance.

The quarter marked the full rollout of the M-Pesa Fintech 2.0 platform, a USD 28 million investment Vodacom launched in April 2026 to process more than 1,000 transactions per second and support the growth of Tanzania’s mobile financial services sector.

Quarterly digital lending disbursements through M-Pesa approached TZS 1 trillion, up 16.5% year-on-year, with loans to small and medium-sized enterprises growing 22.5% and accounting for more than half of total lending disbursed through the platform.

Monthly gross investment through the M-Wekeza platform exceeded TZS 50 billion, nearly tripling from the prior year, as the service was extended to merchants for the first time during the quarter.

The active M-Pesa merchant base grew 25.2% to more than 650,000, while monthly transaction value rose by more than 40% to surpass TZS 2 trillion, reflecting deepening merchant adoption of digital payments across the country.

Communal savings mobilised through the M-Koba group savings product grew more than 60% during the quarter, with the platform’s user base reaching 1.5 million, including a significant share of women and informal savings groups.

Commenting on the results, Vodacom Tanzania Chief Executive Officer Philip Besiimire said: “I am pleased to report a strong start to the financial year 2027, underpinned by disciplined execution of our strategy and sustained investment in our network and digital capabilities.”

For its part, the management remains confident in the company’s growth trajectory over the coming quarters, while noting it will stay mindful of volatility in the external operating environment as it continues investing in broadband coverage, network modernisation and digital financial services capabilities.

Vodacom Tanzania has been listed on the Dar es Salaam Stock Exchange since 15 August 2017 and is majority owned by Vodacom Group Limited, a South African company that is in turn majority owned by Vodafone Group Plc of the United Kingdom.

The company remained Tanzania’s largest mobile network operator by subscriber numbers as of the first quarter of 2026, holding a 32.3% market share ahead of Yas at 28.5%, Airtel at 21.2%, Halotel at 16.4% and TTCL at 1.6%, according to the Tanzania Communications Regulatory Authority.