Safaricom Group has posted a full-year net profit of Ksh 73.6 billion, marking a 61% jump from the Ksh 45.8 billion recorded the previous year. The telco giant credited the strong performance to a 10% rise in total revenue, which climbed to Ksh 427.6 billion from Ksh 388.7 billion in the prior period.
What Drove the Growth
The earnings surge was driven by strong performance across mobile money, voice, and data services. M-Pesa continued to be the crown jewel, processing billions in transactions daily while customer numbers grew steadily across both consumer and business segments.
Mobile data revenue also posted healthy gains as more Kenyans subscribed to 4G and 5G bundles, fueled by increasing demand for streaming, remote work tools, and digital services.
Ethiopia Turnaround Gains Momentum
Perhaps the biggest takeaway from the results was the shrinking of Safaricom Ethiopia’s losses. The subsidiary, which launched commercial operations in October 2022, has been burning through cash as it builds out network infrastructure in Africa’s second most populous country.
However, the latest numbers show the gap narrowing significantly. Safaricom Ethiopia added millions of new subscribers during the year, bringing its customer base closer to the break-even threshold the company has been targeting.
The Ethiopian operation is beginning to show signs that the heavy investment phase is paying off, with revenue growth outpacing cost expansion for the first time.
Shareholder Outlook
The record profit figure is likely to please shareholders and could translate to a higher dividend payout. Safaricom has historically been one of the most generous dividend payers on the Nairobi Securities Exchange, and analysts expect the board to maintain that trajectory when they announce the final dividend recommendation.
Looking ahead, Safaricom faces both opportunities and headwinds — from expanding financial services through M-Pesa to navigating a competitive telecoms landscape and regulatory changes at home.
