Vodafone Egypt has secured a significant milestone in its expansion efforts, acquiring a 5G license for $150 million from Egypt’s Ministry of Communications and Information Technology. This license, awarded on October 7, 2024, marks a major step in Vodafone’s strategic growth as it seeks to position itself at the forefront of digital transformation in the region. In addition to the 5G license, Vodafone Egypt extended its existing spectrum licenses for five years, until 2039, at a cost of $17 million, demonstrating its commitment to the long-term development of its network infrastructure.
Vodacom Group, which oversees Vodafone Egypt’s operations, revealed strong financial results for the six months ending September 30, 2024. Vodafone Egypt contributed 22.1% to the group’s total service revenue, with a remarkable 44.1% increase in local currency. This growth is driven by robust customer engagement, including a significant rise in Vodafone Cash usage, which has become a key financial services platform in Egypt.
Vodafone Cash, a mobile financial services platform, saw a 94.5% increase in service revenue, supported by a 43.1% rise in customer base, reaching 9.6 million users. This platform, which offers peer-to-peer transfers, payments, savings, and microloans, has become a cornerstone of Vodafone Egypt’s growth strategy, reflecting the increasing demand for digital financial solutions across the region. The platform is now serving around 3 million customers, underscoring its importance in the broader financial inclusion landscape.
Vodafone Egypt’s customer base has also grown significantly, reaching a milestone of 50 million customers. With this expansion, average revenue per user grew by 34.6%, demonstrating strong commercial traction. Data usage has surged as well, with data traffic up 32.0% and a 9.6% increase in data customer growth. The network’s smartphone user base also grew by 10.8%, further highlighting the digital shift taking place among consumers.
Financially, Vodafone Egypt contributed R6.2 billion to the Vodacom Group’s EBITDA, accounting for 23.4% of total earnings. The company achieved an impressive EBITDA margin of 43.4%, reflecting excellent cost control in a high-inflation environment. Operating profit in local currency grew by 78.1%, and net income increased by 75.1%, showcasing the company’s financial resilience and successful cost management strategies.
Capital investment in Egypt continues to be a priority for Vodafone, with $125 million invested in network expansion, including the deployment of the 2,600 MHz spectrum and the rollout of new sites. The recent investment into the 5G license marks a new chapter in Vodafone Egypt’s development, solidifying its role as a major player in the region’s telecom industry.
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