Safaricom hits billion-dollar milestone
In the world of East Africa’s evolving business scene, few stories capture the imagination quite like Safaricom’s meteoric rise to the billion-dollar summit. Safaricom PLC, Kenya’s telecom giant, has etched its name in the annals of history, announcing a Kes139 billion (US$1 billion) in earnings before tax for the fiscal year ending March 31st, 2024.
This milestone isn’t just about numbers; it is about the culmination of years of dedication, innovation, and unwavering commitment to excellence. The telco’s journey to US$1 billion mark is a testament to the power of customer-centric strategies, fueled by technological innovations that continue to redefine the very fabric of telecommunications.
As the company’s revenues soared by 13.4 percent to Kes335.3 billion, its cash transfer service M-PESA posted strong performance, accounting for nearly half (42.4 percent) of the company;s revenue streams.
“We are extremely pleased with what we have been able to achieve as a group despite the significant startup costs in our Ethiopia business. We expect that from 2025, Ethiopia will start being a significant growth contributor at group level for both top and bottom line,” Peter Ndegwa, CEO, Safaricom said during the investor briefing.
Mr. Ndegwa added that the company’s vision toward a purpose-led technology company was a critical element in investment in new technologies that have enabled creating more efficiencies and better customer engagement.
“We can 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.”
Similar sentiments were expressed by Dilip Pal, Safaricom’s Chief Finance Officer, stating “We are thrilled to announce our outstanding performance for the past fiscal year. Our steadfast dedication to innovation and purposeful growth has borne remarkable fruits.”
The telco’s partnerships with NCBA and KCB continue to pay dividends beyond overdraft facility Fuliza, offering savings, and loan services of up to to Kes1 million thereby driving financial inclusion and empowering individuals to thrive in an increasingly digital world.
Read also: Safaricom’s Saffire Connect to ignite engagements
Safaricom PLC net income
Safaricom’s net income increased by 13.7 percent to Kes 84.74 billion for Safaricom Kenya, while the Group net income excluding minority interest increased by 1.2 percent to Kes62.99 billion.
As the curtains close on another year, Safaricom’s service revenue hit new heights, reaching Kes295.7 billion, a 5.2 percent. Fueling this surge was M-PESA, arguably Safaricom’s crown jewel, which saw its revenue soar by 8.8 percent to Kes117.2 billion, underscoring the cash transfer’s transformative impact in the region’s fintech industry.
But Safaricom’s ascent doesn’t stop there. In a testament to the potential in the digital arena, mobile revenue surged by 11.4 percent to Kes54 billion, signaling a seismic shift in consumer behaviour towards data-driven experiences during the year.
This surge in digital engagement was also mirrored by an exponential expansion in Safaricom’s customer base, which expanded by 8.1 percent to close the year at 45.9 million, signaling the telco’s growing reach and increasing relevance in the lives of millions of subscribers.
In the year, Safaricom’s innovation and customer-centricity saw one-month active M-PESA customers surge by 5.2 percent to 32.1 million even as mobile data customers went up by 7 percent to 26.1 million.
At the Nairobi Securities Exchange on Thursday, Safaricom shares closed the day 3.4 percent up at Kes16.50 per unit with a turnover of Kes45.88 million. The telco’s counter witnessed Kes35.45 million worth of foreign buys, becoming the second most active counter overall after Equity Group.
