Safaricom (NSE: SCOM) PLC has reported a stellar half-year performance, posting KES 28.1 billion in net income for the six months ending September 30th, 2024. This outcome marks a period of impressive growth for Safaricom, now in its 24th year, as it continues to transform Kenyan lives through innovative technology.
Safaricom’s Kenyan operations remain a powerhouse, with service revenue soaring by 12.9% to reach KES 177.5 billion. This growth translated into an 18% rise in Earnings Before Interest and Taxes (EBIT), reaching KES 79.2 billion, while net income surged by 14.1% to KES 47.5 billion. The growth reflects Safaricom’s keen execution of a customer-focused strategy, according to CEO Dr. Peter Ndegwa. “This performance,” Dr. Ndegwa said, “comes at a time when we are marking 24 years of connecting and transforming Kenyans’ lives, reflecting the relentless execution of our strategy. We are proud of the value we have given our customers and will continue expanding through our innovative spirit.”
Safaricom’s total group revenue mirrored this performance, growing by 13.1% to reach KES 179.9 billion. Despite robust figures, net income on a reported basis, excluding minority interests, dipped by 17.7% due to Ethiopia’s challenging foreign exchange reforms and hyperinflationary pressures. Excluding these impacts, however, net income saw a substantial rise, up 27.1% to KES 36.7 billion, highlighting the company’s resilience.
M-PESA remained a key growth engine, bringing in KES 77.2 billion and contributing 42.9% of revenue—a 16.6% year-on-year increase. Safaricom’s mobile connectivity segment, which encompasses voice, data, and SMS, pulled in 52.2% of revenue at KES 93.9 billion, demonstrating the company’s balanced portfolio.
In Ethiopia, where Safaricom has made strategic strides, the subscriber base expanded by an impressive 47.3% to 6.1 million. Mobile data usage also showed significant growth, with Ethiopian users averaging 6.6GB per month, exceeding Kenya’s 4.1GB average. To address Ethiopia’s complex foreign exchange situation, Safaricom has taken adaptive measures, renegotiating foreign-currency contracts and increasing local sourcing to buffer against currency volatility.
Safaricom’s Board Chairman, Adil Khawaja, noted the company’s commitment to becoming Africa’s leading purpose-led tech company, asserting that Safaricom’s expansion into Ethiopia reflects the company’s determination to drive impact across the continent.
As Safaricom celebrates 24 years of growth, these results underscore its evolution from a telecommunications provider to a diversified tech leader, leveraging customer-centricity and resilience as it continues to shape lives and businesses in Kenya and beyond.
