Home Business Safaricom Group Achieves 13.1% YoY Revenue Growth, Reaching KShs 179.9 Billion in...

Safaricom Group Achieves 13.1% YoY Revenue Growth, Reaching KShs 179.9 Billion in Service Revenue, Report

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Safaricom CEO Peter Ndegwa.

Safaricom PLC has announced its unaudited financial results for the six months ending September 30, 2024, demonstrating significant growth despite navigating a challenging economic landscape across Kenya and Ethiopia.

The Group’s focus on innovation and digital transformation continues to drive momentum as Safaricom pursues its vision of becoming Africa’s leading purpose-led technology company by 2030.

Chief Executive Officer (CEO) of Safaricom PLC, Peter Ndegwa commented on the company’s resilience amid challenging macroeconomic factors, including local and global economic pressures that have impacted customer spending power.

“Despite these challenges, we delivered on our commitment to our customers and shareholders,” Mr Ndegwa noted.

He emphasized Safaricom’s ongoing commitment to societal impact through its M-PESA and Safaricom Foundations, as well as continued digitization initiatives across key sectors such as healthcare, financial services, and agriculture.

Community Impact and Sustainability Initiatives

Safaricom’s sustainability efforts were underscored by an additional KShs 15 billion Sustainability-Linked Loan, bringing total funding for ESG (Environmental, Social, and Governance) initiatives to KShs 30 billion.

This funding supports strategic investments in technology and services that further Safaricom’s mission of transforming lives.

The M-PESA Foundation impacted over 35,000 individuals across 11 counties with healthcare services, while the Safaricom Foundation restored the dignity of 470 women with fistula through targeted healthcare initiatives.

Safaricom also proudly supported Team Kenya at the Paris 2024 Olympics and Paralympics, contributing to the athletes’ training and financial wellness.

Safaricom’s Growth in Kenya and Ethiopia

In Kenya, Safaricom achieved strong performance across multiple service segments. Voice and messaging revenue grew by 4.8% and 8.0% year-over-year (YoY), respectively, driven by campaigns like “Chat Ibambe.”

M-PESA revenue, the backbone of Safaricom’s financial services, rose by 16.6% YoY to KShs 77.22 billion, now accounting for 43.5% of service revenue.

Mobile data revenue also recorded impressive growth of 20.2% YoY, reflecting increased device penetration and innovative customer engagement initiatives.

In Ethiopia, Safaricom’s network now covers 46% of the population, with plans to reach 55% by June 2025 as part of its license obligations.

The company has expanded M-PESA offerings in Ethiopia, supporting customers’ financial well-being.

Additionally, Safaricom Ethiopia has embedded itself in the community, contributing to local projects, including rebuilding the Ashewa Market in Dire Dawa and supporting schools with internet connectivity.

FY25 Guidance Revision

In light of exchange rate fluctuations and macroeconomic challenges, Safaricom has revised its FY25 guidance.

The Group EBIT is now projected to range from KShs 94-100 billion, down from the initial KShs 103-109 billion.

Meanwhile, Capex guidance for Kenya remains steady between KShs 52-55 billion, and Group Capex has been adjusted to KShs 80-86 billion.

Notably, Kenyan EBIT guidance has been upgraded to KShs 155-158 billion, reflecting continued strength in the domestic market.

With Safaricom’s silver jubilee approaching in October 2025, the company is focused on achieving its vision of being Africa’s technology and financial services partner of choice.

Safaricom aims to deliver enhanced customer experiences through new tech capabilities, supporting enterprises and public sectors with secure digital solutions. As Mr Ndegwa stated, “We look forward to the next 25 years of innovation and impact, transforming lives not only in Africa but across the globe.”

Financial Highlights (HY25)

  • Group Service Revenue: Increased by 13.1% YoY to KShs 179.9 billion.
  • Group Customer Growth: Up by 7.8% YoY, reaching 52.01 million customers.
  • M-PESA Revenue: Rose by 16.6% YoY to KShs 77.22 billion.
  • Mobile Data Revenue: Increased by 20.2% YoY to KShs 35.55 billion.
  • Voice Revenue: Grew by 4.8% YoY to KShs 40.55 billion.

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