Kenya’s Safaricom PLC has announced earnings of $1 billion before interest and tax for the period ending 31 March 2024, marking Safaricom as the first company in the region to surpass the billion-dollar mark.
The telecommunications giant reported group-level earnings before interest and tax (EBIT) of $724 million, exhibiting a 3.5 percent year-on-year growth, despite factoring in startup costs and investments in Safaricom Ethiopia.
Safaricom CEO Peter Ndegwa expressed satisfaction with the achievement, stating, “we are extremely pleased with what we have been able to achieve as a group despite the significant startup costs in our Ethiopia business. We expect that from 2025, Ethiopia will become a significant growth contributor at the Group level for both top and bottom line.”
The company’s success can be attributed to various factors, including customer segmentation, digitisation in the public sector, investments in new technologies, and leveraging data analytics for enhanced customer service.
Ndegwa noted, “we can anticipate and serve our customers more intuitively while engaging our communities to solve our societal challenges. As a result of our razor-sharp focus on our customers, we are now a billion-dollar business in Kenya.”
Aligning with the CEO’s words, Safaricom has pledged support for flood victims through its M-PESA Foundation, directing funds towards critical relief efforts in affected areas.
In the financial year under review, Safaricom PLC witnessed a robust 13.4 percent growth in group revenue, reaching $2.5 billion. Notably, M-PESA, the company’s mobile money platform, played a key role, contributing 42.4 percent of the revenue, surpassing the $1 billion mark. The GSM business also made significant contributions, accounting for 52.7 percent of the revenue at $1.3 billion.
Regarding Safaricom’s operations in Ethiopia, Ndegwa highlighted the doubling of the active customer base to 4.4 million and the establishment of a strong network, nearly half the size of Kenya’s. Despite the challenges, Safaricom Ethiopia has demonstrated promising commercial momentum, with Ndegwa noting the involvement of local talent in driving the venture’s success.
“We are pleased with commercial momentum in Ethiopia and proud that we have been able to deliver this momentum with a Safaricom Ethiopia team that is 90 percent Ethiopians.” The CEO revealed.
