Safaricom‘s mobile connectivity business which comprise of voice, data and SMS business is still the telco’s key revenue contributor at 52.2% compared to M-PESA and other services.
The connectivity business contributed 52.2% of revenue at KES 93.9 billion, while M-PESA contributed 42.9%, at KES 77.2 billion. Both the connectivity and the M-PESA business made up KES 171.1 billion or 95.1% of its revenues, meaning Safaricom has a long way to go in its transition to a TechCo and low earth orbiting (LEO) satellite service providers like Starlink have a low impact on its revenues.
Safaricom saw KES 28.1 billion in net income for the six months ended September 30th 2024 driven by double digit growth in the Kenyan unit, with service revenues growing by 12.9% to KES 177.5 billion, resulting in EBIT and Net income growing by 18.0% to KES 79.2 billion, and 14.1% to KES 47.5 billion respectively.
“We are proud of the value that we have given our customers through use of technology, and we will continue growing our core business while expanding into new services through our innovative spirit,” said Dr. Peter Ndegwa, CEO Safaricom PLC.
The group’s service revenue grew 13.1% at KES 179.9 billion, while group EBIT grew by 1.8% to 42.2 billion. Net income excluding minority interest on underlying basis grew 27.1% to KES 36.7Bn.
The firm’s net income excluding minority interest contracted by 17.7% to KES 28.1 billion, due to Ethiopia’s ongoing foreign exchange regime reforms and hyper inflationary accounting.
In Ethiopia, Safaricom customer base hit 6.1 million monthly active customers, while data usage excelled, closing at 6.6GB per average user compared to Kenya’s 4.1GB.
o Service Revenue: KShs 179.9Bn, +13.1% YoY
o Voice revenue: KES 40.9Bn, +4.5% YoY
o M-PESA revenue: KES 77.2, +16.6% YoY
o Mobile data revenue: KES 37.6Bn, +21.5% YoY
o Total customer base: 52.0Mn, +7.8% YoY
o One-month active M-PESA customers: 40.9Bn, +4.5% YoY
o One-month active mobile data customers: 39.8Bn, +10.8% YoY