Safaricom’s Technology Investments Drive Strong Performance, Reporting 13.1% Revenue Growth
Safaricom PLC has posted impressive financial results for the six months ending September 30, 2024, buoyed by significant growth in its Kenyan business and strong contributions from its mobile and M-PESA services. The company reported a 13.1% year-on-year increase in group service revenue, reaching KES 179.9 billion. Despite macroeconomic challenges, including the impact of foreign exchange regime reforms in Ethiopia, Safaricom’s overall net income stood at KES 28.1 billion, though this reflected a 17.7% decrease on a reported basis.
In its Kenyan operations, Safaricom’s performance was particularly strong, with service revenue growing 12.9% to KES 177.5 billion. The company’s Earnings Before Interest and Taxes (EBIT) in Kenya surged 18.0%, reaching KES 79.2 billion, while net income rose 14.1% to KES 47.5 billion. This robust performance highlights the resilience and effectiveness of Safaricom’s strategic focus on innovation and technology.
Dr. Peter Ndegwa, CEO of Safaricom PLC, emphasized that the company’s success was rooted in its relentless focus on technological innovation and customer value. “This performance, which comes as we mark 24 years of transforming lives in Kenya, reflects the relentless execution of our strategy,” Ndegwa said. “We remain committed to growing our core business while expanding into new services, fueled by our innovative spirit.”
The company’s M-PESA platform was a key driver of this growth, contributing 42.9% of group revenue with a 16.6% increase in M-PESA revenue to KES 77.2 billion. Mobile data revenue also grew significantly, increasing 21.5% to KES 37.6 billion. Safaricom’s mobile connectivity business, encompassing voice, data, and SMS, contributed 52.2% of total revenue, amounting to KES 93.9 billion.
In addition to the strong performance in Kenya, Safaricom made substantial progress in Ethiopia. The company’s Ethiopian operations saw a 47.3% growth in its customer base, reaching 6.1 million monthly active users. Data usage in Ethiopia also outpaced Kenya, with the average Ethiopian user consuming 6.6GB of data, compared to 4.1GB in Kenya. Safaricom’s network now covers 46% of Ethiopia’s population.
Adil Khawaja, Chairman of Safaricom’s Board, expressed satisfaction with the company’s performance, particularly in the face of macroeconomic challenges. “We remain focused on our vision of becoming Africa’s leading purpose-led technology company as we advance our propositions in both Ethiopia and Kenya,” Khawaja said.
To mitigate the impact of the ongoing foreign exchange reforms in Ethiopia, Safaricom has implemented several measures, including renegotiating foreign currency-denominated contracts, onboarding local suppliers, and reducing its expatriate workforce.
The company’s total customer base now exceeds 52 million, reflecting a 7.8% year-on-year increase. Active M-PESA and mobile data customers also grew, with M-PESA reaching 40.9 million active users and mobile data reaching 39.8 million active users, marking increases of 4.5% and 10.8%, respectively.
Safaricom’s strong performance in the first half of the 2024 financial year reinforces its position as a technology leader in the region, with a clear commitment to driving further growth and expanding its services across Africa.
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