Safaricom's half-year net profit up 2.1pc to Sh34.2 billion

Safaricom Plc has reported a 2.1 percent growth in net income to Sh34.2 billion for the six months to September 2023, as it booked what it sees as early gains from its investments in Ethiopia. 

The telco said its Kenyan business remained solid, posting a 10.9 percent growth in revenue to Sh41.6 billion in the half year.

Its service revenues grew by 9.3 per cent to Sh158.3 billion in the period, largely due to higher M-Pesa and data revenues.

M-Pesa revenue grew by 16.5 per cent to Sh66.2 billion, largely due to improved consumer and business payments.

Meanwhile, mobile data revenues grew by 12.6 per cent to Sh29.6 billion, driven by higher data usage per subscriber and an increase in the number of 5G devices on the network.

Revenue from fixed data services, which includes fibre to the home, grew by 9.1 per cent to Sh7.4 billion.

Meanwhile, messaging revenues grew by six per cent to Sh5.7 billion, with voice being the only outlier, recording a three per cent decline in revenues to Sh38.7 billion.

Safaricom's expansion in Ethiopia has continued to gain momentum with the addition of mobile money services, where M-Pesa in Ethiopia has gained 1.2 million registered customers with a transaction value of Sh43.7 billion.

Safaricom Plc CEO Peter Ndegwa has described the performance as resilient against the tide of higher inflation and a squeeze on consumers' wallets.

"These results reflect a strong performance in Kenya and strong commercial momentum in Ethiopia. In Kenya, we launched 5G services, while in Ethiopia we launched mobile financial services and mobile data," he noted.

He noted higher operating costs due to the continued expansion of operations in Ethiopia, with the group having invested Sh17.4 billion in expansion during the six months.

Here are the key highlights for Safaricom Plc HY 24

• Service revenue +9.3 percent Sh158.3 billion
• M-Pesa revenue +16.5 percent Sh66.2 billion
• Mobile Data +12.5percent Sh29.6 billion
• Fixed line +9.1 percent Sh7.4 billion
• -Voice -3 percent Sh38.7 billion
• Messaging +6 percent Sh5.7 billion
• Net profit Kenya business +10.9 percent to Sh41.6 billion
• PAT excluding minority interests +2.1 percent to Sh34.1 billion