Vodacom Group Ltd Ord

Welcome to our annual results highlights for the year ended 31st of March 2025. As we draw the curtain on our Vision 2025 strategy, I am immensely proud of the progress we have made over the past five years. We have emerged as a purpose-led leading African operator with clear opportunities to positively impact society and accelerate our growth. This transformation was achieved despite the challenging macroeconomic environment marked by a global health crisis, currency volatility, geopolitical tensions, inflationary pressures and protracted energy disruptions in South Africa. Our purpose of connecting people for a better future has remained our true north through Vision 2025. It has gathered a momentum of its own as we've advanced our three pillars, empowering people, protecting the planet, and maintaining trust. Providing connectivity to empower people is at the core of our strategy. To close the digital divide, we are expanding our coverage from new rural sites to fiber and to space. We actively pursue underserviced areas and leverage partnerships to accelerate connectivity. For example, in the DRC, we have announced a partnership with Orange to build, own, and operate 2,000 solar-powered rural base stations. Once connectivity is available, we drive access to smartphones and support data affordability. In financial year 2025, we began to scale our prepaid handset financing initiative and launched additional lower cost devices. Leveraging our connectivity reach, our tech for good solutions plays a vital role in addressing challenges across critical sectors, including agriculture, education, energy, and healthcare. Agricultural productivity is crucial to Africa's economic future. We offer digital agricultural solutions that streamline input distribution, provide access to insurance and funding, unlock market opportunities, and facilitate payments and subsidies. We already serve more than 10 million registered beneficiaries in the agricultural sector. The group's digital education solutions and partnerships provides more than 2.5 million learners with access to educational resources tailored to specific country needs. We have many initiatives, including the e-learning platforms across our footprint. I'm particularly passionate about our gender-based programs, including Air Mama, Support Against Gender-Based Violence, Code Like a Girl, Josie's Cup, our female leadership program, and inclusive procurement. We also support the digital inclusion of people with disabilities through tailored propositions and support services, as well as assistive technologies, accessible customer services, and digital literacy programs. In FY 2025, we hosted our inaugural accessibility conference, marking a significant step towards promoting digital inclusion for persons with disabilities in Africa. We support youth in Africa in pursuing technology-based career paths. This year, we launched a bold new ambition called the TechStart program. TechStart, in collaboration with AWS, Microsoft and Skillsoft, aims to upskill 1 million African youth by 2027 through a combination of classroom-based training and online learning. Under our Planet Pillar, we have committed to net zero for scope 1 and 2 greenhouse gas emissions by 2035. All our markets have initiatives addressing renewable energy, energy efficiency, circularity and reducing supply chain emissions. In addition to this commitment, we partner with governments and other stakeholders to provide solutions to meet Africa's environmental challenges. A recent deal with South Africa's power utility, ESCOM, is a prime example. We are implementing a fully auditable real-time system that tracks coal from pit to burn, significantly improving efficiency. In an ever-changing environment, we remain committed to doing what is right. Over the last five years, we have emerged as an ESG leader and expect to be even more progressive over the next five years. Over the last five years, Vision 2025 has been central to our ambition of being Africa's leading communications company. We expanded into new African markets by acquiring Vodafone Egypt and rolling out the greenfield operation in Ethiopia as part of a SAPARICOM-led consortium. We are market leaders across our footprint, except in Ethiopia, where we are the challenger as a new entrant. Our geographic diversification and increased scale were key milestones of Vision 2025. In financial year 2020, South Africa contributed 71% of the group's operating profit. Five years later, its contribution is 55%, with Egypt contributing a significant 28%. The geographic expansion also supported our customer-based growth of 96 million customers in the last five years. We now serve 211 million customers across a footprint that includes the DRC, Egypt, Ethiopia, Kenya, Lesotho, Mozambique, South Africa and Tanzania, which combined has a population of 574 million people. With connectivity at our core, we want to connect our customers via air, land or space. Our infrastructure scale supports this ambition. With 48,000 sites across the continent, we are one of Africa's largest tower owners. Beyond infrastructure, I am passionate about connecting our customers to smartphones. At 64% penetration, we are using prepaid device financing bundles and low-cost devices to bridge the gap for the remaining 80 million customers who still don't have a smartphone. Prepaid enhanced financing allows a customer to repay the phone daily or as they generate income. In addition to the progress made in connectivity and geographical reach, we have also driven product diversification as a part of Vision 2025. At the heart of this evolution is our financial service business, which already has 88 million customers. This slide provides more detail on our product diversification with four critical segments. In financial year 2020, prepaid voice was 31% of our service revenue. Today, prepaid voice makes up 18% of service revenue and remains flat in the period, despite structural pressures. We expect prepaid voice to remain as an important contributor to the group as we will manage its contribution over the medium term. There are pockets of growth across the portfolio, including DRC, Egypt and Tanzania, on voice. To deliver on our growth ambitions, we are well positioned with our other product segments, which have increased their contribution significantly since financial year 2020. Prepaid data makes up 29.1% of service revenue and is now 60% larger than voice. We continue to compliment the structural growth in data traffic, demand with increased network coverage, increased smartphone penetration, and improved data monetization. This supported excellent growth of 24.2% in the year. Our contract revenue is largely from South Africa and Egypt and contributes 26.1%. While our customers demand a best-in-class experience, there is a non-negotiable focus area for our contract customers. Our value proposition in contract is further enhanced with loyalty, insurance and content offerings. shifting our focus to another fast-growing product segment, our Beyond Mobile Services. This segment includes fixed, digital, and financial services and IoT. In the Fibre space, we are working on co-investment models to accelerate rollouts across all markets. In South Africa, we were disappointed that the massive transaction was prohibited by the Competition Tribunal and have lodged an appeal with the Competition Appeals Court. Given that Fiverr is a critical enabler of inclusive economic growth, we remain steadfast in our belief that this transaction holds significant public interest and pro-comparative benefits. In financial services, which is the largest component of Beyond Mobile, we are growing across our markets with products that cut across both consumers and merchants. Vodacom's success in this segment is a function of strategic focus. In the slides to come, I will talk you through our roadmap for financial services, which we believe will see this revenue compound at a healthy rate. Pulling together our connectivity, digital and financial service offerings, we partner with businesses to accelerate their growth and with governments to drive efficiencies. We are transforming the ways of working through digital technology in high growth areas like cloud, hosting, managed security, managed services and IoT. Our next strategic phase, Vision 2030, builds on the success of Vision 2025 and unlocks an accelerated growth trajectory. Our purpose will continue to lead our strategic direction and is embedded in how we operate. Through our operations, we aim to close the digital divide, empower our customers, support communities, digitalize governments, and protect the planet. We believe a responsible approach to increasing connectivity can create a better future for all. The first of our three strategic imperatives is about the customer. With our footprint population projected to reach 650 million by 2030, we have a significant opportunity to expand access, drive innovation and provide affordable services. As we grow our customer base, we will deliver an exceptional customer experience, focus on simplified propositions and loyalty. Our second imperative is innovating for growth as we diversify our revenue beyond mobile. Achieving market leadership across all forms of connectivity, including fixed, is a strategic priority. In fixed, we plan to leverage partnerships and co-bills to scale our ambitions. As we innovate beyond mobile, we are committed to driving inclusion. Smartphone penetration is a priority for us, unlocking opportunities for digital services and financial inclusion. Our financial services empower millions across Africa to participate in the formal economy by providing accessible, reliable and innovative digital payment platforms. We expect to meaningfully grow our customer base and deepen our product suite. As we pull together our scale in leadership and connectivity, digital and financial services, we are being an integrated solutions provider of choice for our customers. This will power our growth in beyond mobile services. Finally, we believe that investing in our connectivity scale, differentiated platforms, and a future-ready workforce are strategic enablers of growth. As we expand our talent pipeline, embed Gen-AI training at scale, and foster an engaged frontline first culture, we will support exceptional customer experience. Despite being one of Africa's largest tower owners, we recognize the value of infrastructure sharing and strategic partnerships to expand coverage and enhance efficiencies. We also see opportunities to harness synergies and scale from Vodafone and across our group to achieve operating model efficiencies and optimize assets, services, and capabilities. For each of these ambitions, we have set clear ambitious 2030 targets. The key outcomes for you, our shareholders, are listed on the right. We now target upgraded growth of double-digit service revenue in EBITDA over the medium term, while retaining our attractive returns profile. This slide sets out our growth roadmap for financial services under Vision 2030. We already make a meaningful contribution to financial inclusion across our footprint. Once financially included, we provide customers with an ecosystem that deepens their access to financial services, with products like international remittances, global payments, bill payments, savings, wealth, lending, and insurance. Tanzania is a prime example of how we have deepened inclusion. Today, only 41% of our base revenue is from peer-to-peer and cash-out, whereas three years ago, this was 83%. Further evidence of Tanzania's success is in its contribution of M-Pesa to service revenue. This now stands at 39% and is just behind Kenya. Looking ahead, the next step of our roadmap is unlocking economic growth through financial services. We want to partner with like-minded companies to create a savings culture for consumers through wealth products and an environment for SMEs to thrive. This is where our super apps play a crucial role. They create an open platform where we can integrate our own products with thousands of external service providers. As we execute in this roadmap, we expect to meaningfully scale our financial service customer base to 120 million customers. Similarly, we expect to scale financial services revenue. Across our consolidated markets, we target between 15% and 20% compounded annual growth to financial year 2030, supporting the group's earning profile. In this slide, we provide proof points of our financial services ecosystem. We refer to it as dual-sided as it caters for both merchants and consumers. Our M-Pesa merchant base increased 24% to more than 1.2 million. This growth helps expand our addressable commission pool beyond peer-to-peer payments and withdrawals into both online and offline commerce. In South Africa, our merchant acquiring business is also growing steadily with over 11,300 merchants. In the consumer space, our super apps are scaling across the group. At Pesa App Users, I had 6.7 million supporting higher ARPUs. In Egypt, Vodafone Cash is the go-to mobile wallet in the country, with app users reaching 18 million by year-end. In South Africa, we successfully merged our telecommunications app MyVotoCom into VotoPay during the year. This supported rapid growth in active VotoPay users, which reached almost 2 million. A key use case for the one app strategy is the distribution of airtime. In VotoPay, our direct airtime sales is 10% of prepaid airtime sales. As users come into the app to top up, we leverage the rest of the marketplace to sell one more service. On the right-hand side of the slide, we call out our key growth drivers for financial services in the next financial year. Across our markets, we will deepen financial inclusion, such as savings and loans. For our international markets, these services have already reached 40% of in-place revenue. In Egypt, growth is underpinned by user adoption. We added 3.2 million customers over the last 12 months to reach 11.4 million customers. Into financial year 2026, we are partnering with Egypt's largest bank to support our scale and growth ambitions. South Africa's financial service growth was fueled by insurance in FY 2025, and we expect this to remain a key focus driver into financial year 2026. As we see product success like insurance in a market, we leverage it into the rest of the group. This is also true for global payments, e-commerce, lending, wealth and savings, which we are scaling across our footprint. As a group including Savaricom, we have grown our financial services customers by 11.1% to 88 million. The scope for future growth is material with penetration of our base at just 42%. The scale of our financial services business is reflected in the transaction value and volumes processed through our mobile money platforms. We processed 451 billion US dollars of transactions over the last 12 months, which equates to $1.2 billion every day. Our financial service revenue from our consolidated entities reached 14 billion rand in the year, up 7.6% in rands. The underlying growth trend of 17.6%, which adjusts for foreign currency, confirms how quickly we are scaling financial services. With an additional 23 billion rand generated by Safaricom, this implies a combined fintech footprint that annualizes close to 37 billion rand, or 2 billion US dollars. This is really a formidable business. Overall financial services contributed 11.6% to the group's consolidated service revenue. This was supported by the rapid revenue growth in Egypt. At Safaricom, which is an associate, the contribution increased again and reached 43%. Then looking at the contribution to profit before tax, which includes Safaricom, the weighting from financial services is around 20%. The bottom line contribution of financial services means that Vodacom's investment case offers something quite different to a typical emerging market telco. Turning to the group's results, we reported a strong finish to the year highlighting our earnings potential as we move past recent currency devaluations. Our customers provide the foundation of our growth. We grew customers by 8 million in the year to 211 million customers. This commercial momentum was evident in our revenue, which reached R152 billion, up 10.9% on a normalized basis. The reported growth of 1.1% was impacted by the Egyptian devaluation in March 2024. Group service revenue growth was 11.2% on a normalized basis, exceeding our mid-single-digit target. This result reflected excellent growth from Egypt of 45.2% in local currency, comfortably above inflation levels in the market and good growth in our Beyond Mobile services across the group. Group EBITDA was 55.5 billion and declined 1.1% due to the translation effects of the Egyptian pound devaluation. On a normalized basis, EBITDA growth was 7.8% in line with our target range. Egypt delivered a particularly impressive local currency result with EBITDA growth of 70.4%. South Africa's EBITDA grew 2.3%, supported by cost initiatives but impacted by lower wholesale revenues. Our international business recovered in the second half but still had a disappointing result with EBITDA down 10.9%. Excellent growth in Tanzania of 20.5% was offset by once-off costs in the DRC and revenue pressures from repricing in Mozambique. Net profit for the group increased 3.3% to R19.9 billion. Normalizing for currencies, growth was 13.6%, providing a good signpost for our potential into financial year 2026. Consistent with the net profit result, our HAPS improved significantly in the second half and ended at 857 cents, up 1.3%. Our capital expenditure intensity was within our guidance of 13 to 14.5% of revenue, having spent 20.3 billion rand in the year. Finally, looking at the dividend, the Board has declared a final dividend of 335 cents per share, bringing the total dividend for the year to 620 cents per share. The full year dividend was up 5.1% despite the FX pressures we faced in the year. Vodacom's geographic mix balances growth opportunities and strong cash generation. A look at our customer split shows that we have four similarly sized segments. Of our 211 million customers, 78% are outside South Africa. From a revenue perspective, South Africa remains the largest component. Revenue in South Africa grew 2.8%, impacted by a reset to wholesale revenues. International revenue of R32.3 billion was up 4.6% on a reported basis, impacted by a strong RAND. The normalized growth was 9.3%, supported by good growth in data and in PESA. Egypt delivered revenue of R30.8 billion, contributing 20% to the group. On a reported basis, growth was down 5.4% due to the pound's devaluation in the prior year. In local currency, revenue growth was up an impressive 49.7%, well ahead of inflation. Safaricom had an excellent year, with revenue up 21.7% in rands and 11.2% in shillings. This was driven by double-digit growth in Kenya and accelerated commercial momentum in Ethiopia. Turning to operating profit. In the first half, we reported a decline of 5.2%, but we backed to growth for the full year. In the second half, the Ethiopian devaluation moderated and we lapped the Egyptian devaluation. On a normalized basis, operating profit was up 10.9%, a fantastic result. The operating profit result in South Africa was consistent with the revenue and EBITDA result. In our international business, operating profit declined by 25.2%. This was disappointing, but also includes the impact of our 5.7% direct stake in Ethiopia and associated foreign exchange losses. Egypt delivered a stellar result. Operating profit growth was 16.9% in rands, with local currency growth of 97.5%. Normalizing for last year's FX loss, operating profit growth was a very impressive 65.4%. Finally to Savaricom. Their contribution increased 22.9% to R3.3 billion, recovering strongly in the second half, supported by an excellent result in Kenya. Shifting now to a product lens and looking at the contribution of our Beyond Mobile services to each of our geographic segments. These high growth services include financial and digital services, IoT and fixed. In South Africa, 17.8% of service revenue is now attributable to Beyond Mobile, up from 16.6% in the prior year. This reflects ongoing growth in financial services and excellent growth in fixed. Egypt's Beyond Mobile contribution is scaling quickly due to Vodafone Cash, digital and fixed. At a 17.3% contribution, these services are collectively growing more than 60% year on year. Across our international business, the contribution of Beyond Mobile was 32.4%, while Safaricom continues to set the benchmark at 48%. Under Vision 2030, we intend to scale each of these Beyond Mobile revenue streams into successful businesses. We target a service revenue contribution of 30% for our consolidated operations by 2030. Turning now to our four segments. Our South African business demonstrated continued resilience, achieving service revenue growth of 2.3%. This was led by a recovery in the prepaid segment, a strong year for consumer contract, and the increasing contribution of our Beyond Mobile services. Results were impacted by pressure in the wholesale segment, which diluted service revenue by 1.9 percentage points. Beyond Mobile services was up 10% and contributed R11.2 billion. Fixed service revenue was up an excellent 17.9%, excluding low-margin wholesale transit revenue. Financial services was up 7.9% to 3.4 billion rand, supported by a strong result for insurance. Customers were down 11% to 46 million as we optimized gross ads lower and churned in active customers. The resultant customer base delivered a healthier fourth quarter output and a good prepaid result. Data traffic increased 36.4% for the year, reflecting the investment we've made into network and into spectrum. Looking at our key revenue drivers, mobile contract customer revenue increased by 3.8% to R24.4 billion. This was supported by good growth in consumer as we implemented another round of more-for-more pricing. Prepaid revenue growth stepped up to 3.5% for the year, reflecting a stronger second half. The result was supported by increased focus on rate management. This will remain a key focus into financial year 2026, as will prepaid answered financing. Vodacom business service revenue declined by 2.3% to R16.9 billion, reflecting pressure on wholesale revenue. Excluding wholesale revenue, Vodacom business service revenue was up 5.6%. Cloud hosting and security supported this growth, with revenue for this segment up 35.6%. South Africa delivered EBITDA growth of 2.3% to R33.6 billion. This was a function of excellent cost control with cost growth contained well below inflation. With the wholesale headwind behind us in South Africa, we are targeting mid-single-digit EBITDA growth for financial year 2026. This will require an ongoing focus on efficiencies as well. We see structural opportunities for cost savings through more sharing. In South Africa, we recently approached the competition commission with MTN to advance our sharing agenda. This will be done under the provisions of government's energy user block exemptions regulations. Egypt had a stellar performance in financial year 2025. We achieved service revenue of 27.7 billion, contributing 23% to the group. Service revenue for the year was up 45.2% in local currency. This growth was broad based across all the segments. Data traffic was up 28% despite price increases in the year. Appetite for data was also apparent in our data customer growth of 8.2% to 31.5 million. Smartphones on the network were up 13.1%. Egypt delivered excellent growth in Beyond Mobile services for the year. Financial services revenue was R2.2 billion, accounting for 8% of service revenue. In local currency, Vodafone cash service revenue was up an impressive 80.1%. Egypt also posted strong growth in fixed and IoT. Egypt's EBITDA growth was 70.4% in local currency and contributed R13.4 billion to Group EBITDA, or 24.2%. The reported EBITDA margin of 43.7% was up 3.5 percentage points, reflecting excellent cost control and the impact of foreign exchange losses in the prior year. Net income growth was 99%, a truly excellent result. Service revenue for our international business increased 2.6% to R30.6 billion, impacted by a stronger RAND. From a market perspective, local currency growth of 20.5% in Tanzania, 10.4% in Lesotho, and 8.2% US dollar growth in the DRC. Mozambique had a challenging year due to repricing and post-election tensions. Encouragingly, Mozambique's commercial momentum improved in March 2025, providing scope for a better financial year 2026. Customers were up nicely at 11% to 60 million. International business data traffic growth of 29.6% with 25.9% smartphone user growth. I was particularly pleased with the pace of smartphone penetration. Normalized and based revenue growth was up 11.4% to reach 8.4 billion rand, contributing 27.3% of international business service revenue. Growth was supported by an excellent performance in Tanzania and new growth areas such as lending, savings and merchant services. For example, loans facilitated across our international business increased 29.5% to R21.9 billion. International business EBITDA was R9.5 billion and declined by 10.9% on a normalised basis. This was a disappointing result that reflected revenue pressure in Mozambique and the impact of bad debts and ad hoc supply escalations in the DRC. We anticipate a clear improvement in EBITDA growth and margins in FY2026. Safaricom delivered an excellent year. Service revenue increased 10.8%, with the Kenyan business delivering double-digit growth. EBITDA increased 5.4% in shillings, with Ethiopia supporting a strong recovery in the second half of the financial year. At the net income level, Savaricom reported growth of 10.8% or 14.2%, excluding foreign exchange impacts. This result in the declaration of a stable dividend represents important milestones for Savaricom as it scales the greenfield rollout in Ethiopia. double-clicking them briefly at Kenya and then Ethiopia. Service revenue in Kenya was underpinned by M-Pesa revenue growth of 15.2%. The M-Pesa result was driven by strong customer growth of 10.5% and excellent platform engagement. Kenyan mobile data revenue was another source of strong growth, up 15.2% and supported by customer and traffic growth with strong adoption of our 4G services. Fixed service revenue grew 12.9%, supported by 16.6% growth in customer fixed revenue. The strong revenue performance sets up strong profitability. Kenya EBITDA grew 10.1% with margins and an industry-leading 54%. Switching to Ethiopia, we reached 8.8 million customers, doubling year-on-year. Revenue increased 172% with strong growth in ARPU, adding to the customer traction. Looking into financial year 2026, Safaricom is guiding to another excellent year for Kenya while also forecasting lower losses for Ethiopia. The table on the right of the slide sets this out. The combination of Kenya's growth and Ethiopia's scaling means that the Safaricom Group is expected to grow EBIT by around 50% in financial year 2026. This would clearly have a positive impact on our earnings outlook for the coming year. Vodacom is structurally well positioned for growth. Over three decades, we have built Vodacom Group into a purpose-led business with a footprint reaching 36% of Africa's GDP. We are a market leader across our footprint with a unique opportunity to drive inclusion. Our asset-rich portfolio is another point of differentiation as we own most of our towers and mobile infrastructure. The combination of our connectivity and financial services scale means that we can consistently deliver returns above our cost of capital. Looking ahead and leveraging these attributes, we have set clear targets for Vision 2030. Our customer base is at the heart of why we exist and key to our long-term success. To earn customer loyalty and deliver an exceptional experience, we will focus on loyalty and simplified propositions. As we execute on this priority, we will strive to obtain network promoter score leadership in all our markets and reach a target of 260 million customers by 2030. Vodacom has always been an innovative company. It's part of our DNA. As we innovate beyond mobile, we remain committed to driving inclusion and retaining market leadership. Smartphone penetration is a key enabler of inclusion and a priority for us. We have set ourselves a target of 75% by 2030. We also want to diversify our revenue mix, reflecting our role as an integrated solutions provider of choice. with the contribution of Beyond Mobile Services approaching 30% of group service revenue in our plan. Market leadership also extends to FinTech, where we will increase our financial services customer base to 120 million customers by 2030. Finally, we believe that investing in our connectivity scale, differentiated platforms, and a future-ready workforce are strategic enablers of growth. Our commitment to diversity remains strong with an ambitious gender target aimed at increasing female representation at management levels to 50% by 2030. We will continue to reduce energy consumption through efficiencies, alternative energy and innovation. Our target is to achieve net zero operations for scope one and two emissions by 2035. As we leverage all of these opportunities, we set ourselves a target to generate double digit EBITDA growth over the medium term. Above all else, our next strategic phase, we will focus on simplifying and scaling our existing operations as we relentlessly pursue our purpose to connect people for a better future. We look forward to engaging with you over the coming weeks on our invested roadshows. This concludes my presentation. Thank you for your attention.

It gives me a great pleasure to unpack our results for the year ended 31st of March 2025. The results show significant improvement in our bottom line as a result of the second half of the year compared with the first half as we had expected. My opening slide sets out our group highlights. We achieved 1.1% revenue growth to reach 152 billion rents. This is a pleasing result given that in this period the Egyptian pound devalued by more than 60% in March 2024. Group service revenue and EBITDA, which declined 0.1% and 1.1% respectively, both reflect an improved trend from the first half. Our Beyond Mobile services continue to grow pleasingly, underpinned by financial services. As we move into the next strategic phase, our Vision 2030, we set our sights of reaching a 30% contribution from Beyond Mobile. The group EBITDA margin was 36.5%, down 0.8 percentage points year on year, reflecting a disappointing year on our international business. Pleasingly, EBITDA margin in South Africa was stable, while in Egypt we improved the normalized margin by 0.5 percentage points to 45%, reflecting excellent cost containment. Herbs grew 1.3% to 857 cents per share, representing a significant recovery in the second half of the financial year. South Africa, Egypt, and our associate contributed to the earnings growth while the international business detracted. Return on capital employed or ROKI was 23.5% up 0.4 percentage points on the prior year. This reflects good capital allocation. Looking ahead, our ROKI will be included in management's LTI targets. Our balance sheet remains in healthy position with leverage sustained at 0.9 times. Our leverage position was supported by excellent free cash flow generation of 18.2 billion rands. From a shareholder perspective, our board declared a final dividend of $0.335 per share, which equates to a full-year dividend of $0.620 per share. This represents growth of 5.1%, representing a payout ratio of 78%. Vodacom is evidently one of the highest dividend payouts on the Johannesburg Stock Exchange, reflecting our excellent cash generation and strong balance sheet. The fourth quarter represented our strongest service revenue result for the year, both from a reported and normalized perspective. This provides us with a good momentum into the new financial year FY26. For the quarter, group service revenue grew by 13.5% on a normalized basis, well above our inflation footprint. The result highlights the growth profile of our diversified portfolio and strong commercial execution. The quarter also marked a return to rent reported growth as we left the March 2024 devaluation in Egypt. South Africa's service revenue grew 3.4% in the fourth quarter, the highest growth for the year. The quarterly result was supported by sustained growth in prepaid revenue and an excellent result in fixed revenue. Service revenue of our international business increased 2.6% to 30.6 billion rands for the full year, impacted by a stronger rand. In the fourth quarter, service revenue in international business saw growth acceleration to 9.2% as Mozambique's commercial momentum improved in March. Egypt delivered service revenue of 27.7 billion rands in the year, contributing 23% to the group. Their service revenue in local currency accelerated to 47.7% in the fourth quarter. The final quarter of the year in Egypt was supported by a strong commercial campaign as well as price adjustments implemented across mobile and fixed services in December. Whilst we are pleased with our exit trend for the year, we must acknowledge that the macro cycle has had a material impact on our earnings. We estimate the impact to be around 241 cents per share over the last three years. Significantly, and despite the numerous geopolitical headwinds, the second half represented a period of stability for us. In fact, there were no material macro impacts to call out for our EPS. This marks a pleasant change from the prior periods. Despite this outcome, we remain conscious of the global tariff debate, which do not appear to have a material or direct impact on us. We are also pleased that mitigating strategies, which are reflected through our geographic and product revenue diversification, our localized cost structures and balance sheet position meant that we were able to weather this macro cycle with limited impact on cash generation or leverage. During the year, we refinanced 11 billion rands and repaid 2.4 billion rands of our most expensive debt. On the right of the slide, we set out our multi-year free cash flow profile. FY25 was another excellent year as we generated 18.2 billion rands of free cash flow. of free cash flow generation supported unchanged group leverage of 0.9 times net debt to EBITDA despite a 2.9 billion rents investment into the 5G license payment in Egypt. We reported headline earnings per share of 857 cents, up 1.3%. As already noted, the full year result reflected two very different trends in the first and the second half of the year. In the second half, headline earnings per share growth recovered to 23.5%, supported by a strong performance from our operations and a period of macro stability. For the full year, Mozambique, DRC and FX losses from Ethiopia detracted around 80 cents per share from the full year result. Earnings from the rest of our operations positively contributed 92 cents per share, supported by growth in South Africa, Egypt and Kenya. From reflecting backwards to forward looking, from a position of commercial and balanced strength, we are well positioned to accelerate our growth. Diversifying our beyond mobile services is a key priority for the group and improving our customer proposition. On a consolidated basis with South Africa, Egypt, and international business in scope, we saw that our Beyond Mobile services revenue contributed 21.4% of group service revenue, up from 20% in the prior year. Encouragingly, there was progress across all our markets. Looking ahead, our Vision 2030 ambition is to increase this contribution to around 30% in the next five years. The largest weighting within Beyond Mobile is our financial services portfolio. We see the scope for revenue in this business to compound at 15 to 20% over the five years as we deepen financial inclusion across our markets. In addition to financial services, we intend to scale our IoT fixed and digital service revenue to complement the growth in our core mobile. In my concluding slide, I set out our medium term targets. With a strong foundations from our vision 2025, and as we execute on vision 2030, we are well positioned to accelerate growth and deliver attractive returns with a portfolio of market leading assets across Africa. As a result, we have upgraded our medium-term targets for group service revenue and EBITDA growth from high single-digit to double-digit growth. Our guidance for group capital intensity of 13 to 14.5% remains unchanged. These targets are on average over the next three years based on prevailing economic conditions. These targets are not without challenges. Notably, the macro outlook remains uncertain with both global growth concerns and local factors. More positively, as evident in our second half, inflation and FX trends have stabilized, at least in the short term. Safaricom, an associate of the group, provided its own guidance for FY26. Safaricom is expecting another excellent year for Kenya while forecasting lower losses for Ethiopia. This should provide Vodacom Group with good upside potential for earnings growth in the coming year. On that note, I will conclude and thank you for your attention.