Business

Safaricom PLC posts Sh34.2bn profit, attributes growth to strategic milestones in Kenya and Ethiopia

Safaricom CEO Peter Ndegwa.

By Patel Okumu | Thursday, November 9, 2023

Safaricom PLC posted a profit growth for the six months ending September 30, 2023, as its Kenyan business achieved a remarkable 10.9 per cent surge in net income, reaching Sh41.6 billion.

Safaricom PLC posted a profit growth for the six months ending September 30, 2023, as its Kenyan business achieved a remarkable 10.9 per cent surge in net income, reaching Sh41.6 billion. Additionally, the group's net income, excluding minority interest, experienced a positive 2.1 per cent growth, totaling Sh34.2 billion, a significant rebound from the 10.6 per cent decline observed in FY23. The group's service revenue also expanded by 10 percent.

The impressive financial performance was underpinned by Safaricom's strategic initiatives, including substantial price reductions across its Kenya business, resulting in enhanced value for customers. The company has gradually lowered data prices by up to 65 per cent, outgoing call rates by 44 per cent per minute, and M-Pesa tariffs by up to 61 per cent since 2020.

Keep reading

Moreover, the successful execution of the business strategy, which included the launch of specialised products such as Safaricom Hook and the accelerated rollout of 5G services, has contributed to the company's strong performance. Peter Ndegwa, Safaricom's CEO, emphasised the company's commitment to supporting its customers during challenging times, which has resulted in increased usage of its services, leading to the notable growth in profitability and revenue.

In Ethiopia, Safaricom achieved significant milestones, leveraging accelerated commercial momentum and the successful introduction of M-Pesa services. Within a span of fewer than two months, the company registered over 1.2 million customers on the M-Pesa platform in the Ethiopian market. Ndegwa emphasised the pivotal role of the company's operations in Ethiopia in driving future growth, with a specific focus on deepening financial inclusion and promoting a cash-lite economy, given that only 35 per cent of Ethiopians are currently financially included.

Highlighting the immense potential in Ethiopia, Ndegwa underscored the growing opportunities with M-Pesa and mobile data, despite starting from a relatively small base. He expressed satisfaction with the usage levels of mobile data in the Ethiopian market, highlighting the significant progress achieved in this domain, which took Safaricom close to a decade to accomplish in the Kenyan market.