Safaricom PLC has released its unaudited results for the six months ending September 30, 2024, showcasing a robust performance despite facing a range of economic challenges, including floods and currency devaluation.
The report highlights double-digit growth in revenue and strong customer base expansion, marking a significant stride in the company’s regional growth ambitions, particularly in Ethiopia, where the Ethiopian Birr depreciated substantially against the US Dollar.
The Group recorded a 13.1% year-over-year (YoY) increase in service revenue, reaching KShs 179.9 billion, largely fueled by M-PESA, mobile data, and fixed data services.
The Group’s customer base grew by 7.8% YoY to 52.01 million, while one-month active customers increased by 10.8% YoY to 39.75 million.
Additionally, Safaricom Kenya maintained its market leadership with a 65.4% share as of June 2024.
Kenya Business Performance
In Kenya, the company experienced growth across all core business segments:
Voice and Messaging: Voice revenue grew by 4.8% YoY to KShs 40.55 billion, supported by a 10.6% increase in active customers to 28.46 million. Messaging revenue rose 8.0% YoY to KShs 6.20 billion, buoyed by campaigns like Chat Ibambe. Collectively, voice and messaging now account for 26.4% of total service revenue.
M-PESA: M-PESA continued to perform strongly, with a 16.6% YoY revenue increase to KShs 77.22 billion. Chargeable transactions per active customer grew by 25.6% YoY, while M-PESA transaction value climbed by 10.7% YoY to KShs 20.85 trillion. New products, including Pochi la Biashara and merchant overdraft facilities, have been instrumental in supporting SMEs and expanding M-PESA’s reach, which now represents 43.5% of service revenue.
Mobile Data: Driven by a 13.5% YoY increase in ARPU, mobile data revenue rose by 20.2% YoY to KShs 35.55 billion. Mobile data now accounts for 20% of service revenue, with the number of active mobile data customers increasing by 10.5% to 28.83 million.
Fixed Service and Wholesale Transit: Revenue from fixed services and wholesale transit grew by 14.7% YoY to KShs 8.45 billion. Fiber-to-the-home (FTTH) penetration rose to 65.4%, and the company’s market share in broadband climbed to 36.4%.
Ethiopian Market Expansion
Safaricom’s business in Ethiopia showed remarkable growth, supported by the expanding customer base and network quality:
Voice and Messaging: Voice revenue increased by 27.1% YoY to KShs 516.4 million, with active voice customers growing by 63.8% to 3.57 million. Messaging revenue nearly doubled, reaching KShs 36.7 million, reflecting strong customer engagement.
Mobile Data: Mobile data revenue soared from KShs 1.32 billion to KShs 3.22 billion, as active customers surged from 1.4 million to 3.5 million. The rollout of a reliable 4G network and smart device initiatives have underpinned this growth.
M-PESA: With 8.31 million registered customers and active M-PESA agents and merchants, the Ethiopian market registered KShs 24.4 million in M-PESA revenue. Transaction volumes and values reached 86.5 million and KShs 10.94 billion, respectively.
Profitability and Financial Highlights
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rose 13.7% YoY to KShs 102.9 billion, while Earnings Before Interest and Tax (EBIT) increased by 18.0% YoY to KShs 79.2 billion.
Net income for the Group grew by 14.1% YoY to KShs 47.5 billion, reflecting a balanced growth strategy across all service lines and customer segments.
Chief Financial Officer of Safaricom PLC, Dilip Pal commented, “Despite the economic disruptions and foreign exchange challenges in Ethiopia, we are pleased with our financial performance, which demonstrates our resilience and commitment to delivering value to our customers and stakeholders. We are optimistic about the long-term potential in both Kenya and Ethiopia as we continue to grow our footprint.”
