Safaricom PLC reported a robust performance for the six months ending September 30, 2024, with group service revenue climbing by 13.1 percent to reach KES 179.9 billion, while group EBIT grew 1.8 percent to KES 42.2 billion.
The Kenyan telecommunications giant’s net income attributable to equity holders stood at KES 28.1 billion, reflecting steady gains from its core markets despite economic challenges in its Ethiopian expansion.
In Kenya, Safaricom saw double-digit growth, with service revenue rising by 12.9 percent to KES 177.5 billion, driving EBIT up by 18.0 percent to KES 79.2 billion and net income up by 14.1 percent to KES 47.5 billion. CEO Dr. Peter Ndegwa attributed this growth to Safaricom’s dedication to using technology to enhance customer experience, marking 24 years of service to Kenyans. “This performance reflects the relentless execution of our strategy. We are proud of the value that we have given our customers through the use of technology, and we will continue growing our core business while expanding into new services through our innovative spirit,” he said.
The group’s mobile connectivity segment, including voice, data, and SMS, contributed 52.2 percent of revenue at KES 93.9 billion, while the popular mobile money platform M-PESA accounted for 42.9 percent, or KES 77.2 billion, of total revenue. M-PESA’s revenue alone surged by 16.6 percent year-over-year.
Board Chairman Adil Khawaja noted the Board’s satisfaction with Safaricom’s performance as it continues its vision to become Africa’s leading technology company. Safaricom Ethiopia, a recent but pivotal expansion for the group, recorded a 47.3 percent rise in its customer base, reaching 6.1 million active monthly users. Additionally, Ethiopian customers have exhibited high data usage, averaging 6.6GB per user compared to 4.1GB in Kenya.
However, Ethiopia’s economic conditions, including foreign exchange reforms and hyperinflation, have impacted the group’s reported net income, which declined by 17.7 percent on a reported basis to KES 28.1 billion. To mitigate these challenges, Safaricom Ethiopia has renegotiated contracts in foreign currency, increased local sourcing, and streamlined its expatriate base.
Financial Highlights:
- Service Revenue: KES 179.9 billion, +13.1 percent YoY
- Voice Revenue: KES 40.9 billion, +4.5 percent YoY
- M-PESA Revenue: KES 77.2 billion, +16.6 percent YoY
- Mobile Data Revenue: KES 37.6 billion, +21.5 YoY
- Total Customer Base: 52.0 million, +7.8 percent YoY
- Net Income (underlying basis): KES 36.7 billion, +21.7 percent YoY
Looking ahead, Safaricom remains committed to its growth strategy, leveraging technology to enhance connectivity and financial inclusion across Africa. The company’s performance underscores its resilience and adaptability in both its mature and emerging markets.