Safaricom PLC has announced KSh28.1 billion in net income attributable to equity holders for the six months ending September 30, 2024.

The strong performance was driven by double digit growth in the Kenyan unit, where service revenue grew by 12.9% to KSh177.5 billion, resulting in EBIT and Net income growing by 18.0% to KSh79.2 billion, and 14.1% to KSh47.5 billion respectively.

“This performance, which comes at a time when we are marking 24 years of connecting and transforming Kenyans’ lives, reflects the relentless execution of our strategy. We are proud of the value that we have given our customers through use of technology, and we will continue growing our core business while expanding into new services through our innovative spirit,” said Dr. Peter Ndegwa, CEO Safaricom PLC.

In the period under review, the group service revenue grew 13.1% at KSh179.9 billion, while group Earnings Before Interest and Taxes (EBIT) grew by 1.8% to KSh42.2 billion.

Net income excluding minority interest on underlying basis grew 27.1% to KSh36.7 billion. On a reported basis, net income excluding minority interest contracted by 17.7% to KSh28.1 billion, weighed down by the impact of Ethiopia’s ongoing foreign exchange regime reforms and hyper inflationary accounting.

Safaricom Group’s mobile connectivity business, comprising of voice, data and SMS, contributed 52.2% of revenue at KSh93.9 billion, while M-PESA contributed 42.9%, at KSh77.2 billion.

Adil Khawaja, Safaricom’s Board Chairman said, “The Board is pleased with the great performance recorded in the period under review. We remain focused on our vision of becoming Africa’s leading purpose-led technology company as we advance our propositions in both Ethiopia and Kenya.”

In Ethiopia, where Safaricom now has a network covering 46% of the population, the customer base grew by 47.3% to hit 6.1 million monthly active customers, while data usage excelled, closing at 6.6GB per average user compared to Kenya’s 4.1GB.

To mitigate against the short-term impact of the ongoing foreign exchange regime reforms, Safaricom Ethiopia has taken several steps including renegotiating foreign currency denominated contracts, onboarding local suppliers for certain products and services and reducing the expatriate’s base.

Key Highlights – Safaricom Group (including Ethiopia)

o Service Revenue: KShs 179.9Bn, +13.1% YoY
o Voice revenue: KES 40.9Bn, +4.5% YoY
o M-PESA revenue: KES 77.2, +16.6% YoY
o Mobile data revenue: KES 37.6Bn, +21.5% YoY
o Total customer base: 52.0Mn, +7.8% YoY
o One-month active M-PESA customers: 40.9Bn, +4.5% YoY
o One-month active mobile data customers: 39.8Bn, +10.8% YoY
Net Income on underlying basis (excluding IAS 29 and impact of FX regime
reforms in Ethiopia
o Safaricom Group excluding Minority Interest: KES 36.7Bn, +21.7% YoY
o Safaricom Plc Kenya: KES 47.5Bn, +14.1% YoY
o Safaricom PLC Kenya Operating Free Cash Flow: KES 80.6Bn, +41.4% YoY