The news
- Safaricom’s net profit rose 11% to $540 million in FY2024, driven by Kenya’s strong performance and reduced losses in Ethiopia.
- Ethiopian operations’ losses decreased by over 50%, contributing nearly 10% to group revenue.
- Group revenue reached a record $3 billion, with M-Pesa and mobile data services leading growth.
- Safaricom projects up to 50% EBIT growth in FY2025, anticipating profitability in Ethiopia by 2027.
Kenya’s leading telecom operator, Safaricom, reported an 11% increase in net profit to $540 million for the fiscal year ending March 2025, marking a significant turnaround after two years of earnings pressure. This growth was primarily driven by robust performance in its home market and a substantial reduction in startup losses from its Ethiopian operations.
Group revenue reached a record $3 billion, up from the previous year, with mobile data and M-Pesa services being key contributors. M-Pesa alone accounted for 44.2% of Kenya’s service revenue, reflecting its central role in Safaricom’s business model. The company’s customer base expanded by 16% to 57.1 million, indicating strong market penetration. T
In Ethiopia, Safaricom’s losses narrowed significantly to $165.7 million, down from $472.4 million the previous year. The Ethiopian unit contributed nearly 10% to the group’s revenue, with its customer base more than doubling to 8.8 million. M-Pesa services in Ethiopia also saw growth, with 2.4 million active users conducting transactions worth over $160 million. Last year, the company began enabling remittance from Kenya to Ethiopia as it aimed to capitalise on growth in the country.
Safaricom’s CEO, Peter Ndegwa, expressed optimism about the company’s future, projecting up to a 50% increase in earnings before interest and taxes (EBIT) for the next fiscal year. The company anticipates that its Ethiopian operations will become profitable by 2027, as it continues to invest in infrastructure and expand its services in the region.
Despite challenges such as currency depreciation and economic disruptions in Ethiopia, Safaricom’s strategic investments and focus on digital services have positioned it for sustained growth. The company’s performance underscores its resilience and adaptability in navigating complex regional markets.
