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Safaricom’s operating profit hits Sh140billion, highest in the region

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Kenya’s Telco giant, Safaricom has announced its Sh139.9 Billion earnings before interest and tax (EBIT) for the period ending March 31st, 2024.

At a group level, inclusive of startup costs and investments in Safaricom Ethiopia, the group noted it recorded an EBIT of Sh94.9 billion, marking a 3.5% year-on-year growth.

“Exceeding both market expectations and the group guidance range of Sh129 billion to Sh132 billion,” noted the telco.

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This performance is attributed to customer segmentation, public sector digitization, investments in new technologies, and enhanced data analytics capabilities for improved customer service.

Safaricom PLC Chief Executive Officer (CEO), Peter Ndegwa expressed satisfaction with the group’s accomplishments despite significant startup costs in Ethiopia.

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Anticipating Ethiopia’s substantial growth contribution from 2025 onwards, he emphasizes the strategic importance of the venture for both top and bottom-line growth.

“We are extremely pleased with what we have been able to achieve as a group despite the significant startup costs in our Ethiopia business. We expect that from 2025, Ethiopia will start being a significant growth contributor at group level for both top and bottom line,” said Mr Ndegwa.

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During the same period, Safaricom PLC Group revenue surged by 13.4% to Sh335.3 billion, with M-PESA contributing 42.4% of revenue at Sh140 billion and the GSM business contributing 52.7% at Sh173.9 billion.

Mr Ndegwa noted the company’s commitment to purpose-led technological advancements, facilitating better efficiencies and customer engagement.

By focusing on customer needs, Safaricom solidifies its position as a billion-dollar business in Kenya.

“We are able to anticipate and serve our customers more intuitively, while engaging our communities to solve their societal challenges. As a result of our razor-sharp focus on our customers, we are now a billion-dollar business in Kenya,” Mr Ndegwa noted.

Regarding Ethiopia, the CEO highlighted the company’s significant strides, including doubling the active customer base to 4.4 million and building a robust network infrastructure, all achieved with a predominantly Ethiopian team.

The company’s Board Chairman, Adil Khawaja announced the board’s recommendation of a final dividend of 65 cents per ordinary share, totaling Sh48.08 billion for Financial Year 2024 (FY24), reflecting the company’s growth trajectory and commitment to shareholder value.

Supporting Flood Victims

Safaricom pledges support to flood victims through the M-PESA Foundation, allocating Sh30 million for immediate relief efforts in affected areas.

“The Sh30 million will be used to support the initial relief efforts that include vital supplies, food, temporary shelter, medicines, and emergency medical kits in affected areas,” Mr Khawanja noted that the company would continue to pursue its purpose of transforming lives and engage more with the communities they served.

Key Highlights – Safaricom Group (Including Ethiopia)

  • Service Revenue: Up by 5.2% to KES 295.7 Billion.
  • Voice Revenue: Declined by 2.6% to KES 81.1 Billion.
  • M-PESA Revenue: Increased by 8.8% to KES 117.2 Billion.
  • Mobile Data Revenue: Grew by 11.4% to KES 54.0 Billion.
  • Total Customer Base: Expanded by 8.1% to 45.9 Million.
  • One-month Active M-PESA Customers: Rose by 5.2% to 32.1 Million.
  • One-month Active Mobile Data Customers: Grew by 7.0% to 26.1 Million.

Net Income:

  • Safaricom Group Excluding Minority Interest: Declined by 10.6% to KES 62.3 Billion.
  • Safaricom Plc Kenya: Increased by 3.0% to KES 74.5 Billion.
  • Safaricom PLC Operating Free Cash Flow: Up by 4.3% to KES 115.7 Billion.

Safaricom operates the world’s largest mobile payment system, M-PESA, driving financial inclusion by empowering over 32.1 million customers to transact, save, or borrow money through their mobile phones, generating significant revenue and driving financial inclusion.

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Diana Mutheu
Diana Mutheu
Diana Mutheu is a Tech enthusiast, happy to delve deeper into the African tech space covering Social Media, AI, Startups, Telcos, Cryptocurrency, Big Data, Women in Tech and all matters Tech. Write to me @[email protected]

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