Safaricom PLC has recorded another consecutive growth in its half-year financial results, with the company’s revenue rising to Ksh181 billion for the period ending September 30, 2024. This marks a stellar 14 per cent increase in profits, bolstered by strong performance across all its key service sectors, including MPESA, voice, and mobile data.
The announcement, made on Thursday, November 7, points to Safaricom’s expanding market influence, not only in Kenya but also in Ethiopia, where the company recently made its foray.
One of the standout figures in the report was the company’s service revenue, which surged by 12.9 per cent to reach Ksh177.5 billion. This growth reflects the company’s success in attracting a broader customer base across its various services, especially in the mobile money and data segments.
The Ethiopian market has played a pivotal role in driving the company’s top-line growth. Safaricom’s entry into Ethiopia has been marked by a positive reception, with consumers increasingly adopting its services, a trend that is expected to continue. This expansion has also contributed to the company’s overall revenue boost, aligning with its long-term growth strategy.
MPESA, Safaricom’s flagship mobile money service, continues to shine, generating Ksh77.2 billion in revenue for the first half of the year, up from Ksh66.2 billion last year. This 16.6 per cent increase underscores the service’s continued dominance in the mobile financial space.
The recent launch of MPESA Ratiba, a payment scheduling service introduced in October, has further strengthened MPESA’s position as a key revenue driver. According to Safaricom CEO Peter Ndegwa, one million Kenyans have opted into the programme with Ksh336 million transactions being made so far.
In addition, Safaricom's mobile data revenue saw a robust increase of 20.2 per cent, reaching Ksh35.6 billion. The telco also recorded a rise in earnings before interest and taxes (EBIT), which grew by 18 per cent to Ksh79.2 billion. This surge indicates a significant improvement in operational efficiency, as the company continues to streamline its processes and enhance profitability.
A key highlight of the report was Safaricom’s EBITDA (earnings before interest, taxes, depreciation, and amortisation), which exceeded Ksh100 billion for the first time, reaching Ksh102.9 billion. This 13.7 per cent increase showcases the company's strong financial health and its ability to generate cash flow while reinvesting in new technology and services.
The company’s net income for Kenya, a critical market, grew by 14.1 per cent, amounting to Ksh47.5 billion. This result reflects the sustained demand for Safaricom’s services, particularly as more consumers rely on mobile communication and data services for everyday tasks.
Looking ahead, Ndegwa announced that the company will continue venturing into other innovative solutions to continue driving its growth. He also thanked their customers for having been a big part of the impressive growth.
''As a telco, we are using artificial intelligence and big data to allow us to move away from one-size-fits-all all products to differentiated offerings that suit each customer. I want to thank our valued customers for allowing us to serve them over the last 24 years,'' Ndegwa stated.
On the other hand, Safaricom’s chairman, Adil Arshed Khawaja, announced that the company is embarking on its 2030 strategy. He noted that the 2020-2025 strategy, which successfully transitioned Safaricom from a traditional telecommunications company to a technology-driven business, is nearing its end. The new strategy will position Safaricom as Africa’s leading purpose-driven technology company by the year 2030.
''This fiscal year serves as the last for our 2020-2025 strategy,” Khawaja stated. “As we look towards 2030, we aim to be the leading purpose-led technology company in Africa, continuing to drive innovation and serve our customers with cutting-edge solutions.''
