Safaricom PLC has achieved a remarkable feat by becoming the first company in the East African region to surpass $1 billion in annual earnings.
The company announced staggering earnings before interest and tax (EBIT) of KES 139.9 billion for the fiscal year ending March 31, 2024, surpassing market expectations and its own guidance range.
“We are extremely pleased with what we have been able to achieve as a group despite the significant startup costs in our Ethiopia business,” said Peter Ndegwa, Safaricom’s Chief Executive Officer. “We expect that from 2025, Ethiopia will start being a significant growth contributor at group level for both top and bottom line.”
Safaricom’s impressive performance was driven by strategic customer segmentation, public sector digitization initiatives, investments in new technologies, and effective use of data analytics to better understand and serve its customer base. The company’s mobile money service M-PESA continued to be a major growth driver, contributing 42.4% of revenue at KES 140 billion.
“We are able to anticipate and serve our customers more intuitively, while engaging our communities to solve their societal challenges. As a result of our razor-sharp focus on our customers, we are now a billion-dollar business in Kenya,” Ndegwa noted, highlighting the company’s customer-centric approach and commitment to social impact.
Despite the substantial startup costs associated with its expansion into Ethiopia, Safaricom’s group revenue grew by 13.4% to KSh 335.3 billion ($2.25 billion). The company’s net income in Kenya increased by 13.7% to KES 84.74 billion, while the group’s net income, excluding minority interests, rose by 1.2% to KES 62.99 billion.
Adil Khawaja, Safaricom’s Board Chairman, announced that the board will recommend a final dividend of 65 cents per ordinary share, bringing the total dividend payable for the fiscal year 2024 to KES 48.08 billion.
Safaricom’s remarkable achievement is a testament to the company’s strategic vision, operational excellence, and commitment to innovation. The company’s success is not only a significant milestone for the Kenyan economy but also a source of inspiration for businesses across the region.
As the company expands its footprint in Ethiopia and continues to drive digital transformation, analysts anticipate further growth and consolidation of Safaricom’s position as a leading force in the East African telecommunications landscape.
“We have doubled our active customer base to 4.4 million in Ethiopia, built a world-class network that is currently almost half the size of Kenya’s, and are on track to meet our license obligations,” Ndegwa said, highlighting the company’s progress in the Ethiopian market.
Safaricom’s commitment to corporate social responsibility was also evident in its announcement of KES 30 million in support for flood victims through the M-PESA Foundation, demonstrating the company’s dedication to transforming lives and engaging with the communities it serves.
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