Vodacom Tanzania Reports TZS 47.3 Billion Quarterly Net Profit Fueled by Data and M-Pesa

Vodacom Tanzania Plc reported a net profit after tax of TZS 47.3 billion for the quarter ended 30 June 2026, representing a surge of more than 200% compared to TZS 8.5 billion recorded in the same period last year.

Vodacom Tanzania is a leading mobile network and financial technology service provider in Tanzania, offering voice, mobile broadband, and M-Pesa services. This significant growth was primarily driven by double-digit increases in data and M-Pesa usage, which contributed to a 21.7% rise in total service revenue, reaching TZS 510.9 billion.

The company’s operating profit climbed 174.4% to TZS 105.8 billion during the quarter. This jump was partially attributed to a lower base in the previous year, which had been affected by temporary modernization costs. EBITDA also saw a healthy increase of 37.0%, reaching TZS 197.3 billion, with margins expanding to 38.3% due to strong revenue growth and improved operational efficiencies.

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Commercial momentum remained robust across all areas, with the total customer base growing by 21.6% to 28.6 million. Data revenue increased by 26.3%, driven by a 23.0% rise in smartphone users. M-Pesa revenue also experienced significant growth, expanding by 26.0%. Additionally, digital lending disbursements approached TZS 1 trillion, with SME lending constituting over half of that volume, highlighting strong activity in the digital financial sector.

A major milestone for the quarter was the completion of the M-Pesa platform modernization program. The business migrated from its legacy system to a next-generation financial technology platform designed for higher transaction capacity, enhanced security, and greater resilience.

To support this digital shift and expand broadband coverage, Vodacom nearly doubled its capital expenditure to TZS 123.2 billion, an increase of 94.6% year-on-year. This investment focused heavily on radio access network (RAN) modernization and expanding high-speed internet access.

Philip Besiimire, Chief Executive Officer, 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.”