Home » Safaricom Achieves Record Profit to Set New Standards in the Telecom Industry

Safaricom Achieves Record Profit to Set New Standards in the Telecom Industry

Safaricom PLC has once again demonstrated its industry leadership by achieving a record profit and setting new benchmarks in the telecommunications sector.

With earnings before interest and tax (EBIT) reaching an unprecedented KSh 140 billion for the period ending March 31, 2024, Safaricom has solidified its position as a powerhouse in the region.

Safaricom sets new industry standards with a record KSh 140 billion profit, driven by innovative strategies and strong community impact
Safaricom sets new industry standards with a record KSh 140 billion profit, driven by innovative strategies and strong community impact

Safaricom’s financial performance exceeded market expectations and surpassed the group guidance range of KSh 129 billion to KSh 132 billion.

This achievement was driven by strategic customer segmentation, public sector digitization, investments in new technologies, and an enhanced use of data and analytics to better understand and serve customers.

During the announcement of the full-year results, Safaricom CEO Peter Ndegwa expressed his pride in the company’s accomplishments: “We are extremely pleased with what we have been able to achieve as a group, despite the significant startup costs in our Ethiopia business. From 2025, we expect Ethiopia to start being a significant growth contributor at the group level for both top and bottom lines.”

Safaricom’s group revenue grew by 13.4% to KSh 335.3 billion, with M-PESA contributing a substantial 42.4% of the revenue at KSh 140 billion.

The GSM business also played a crucial role, contributing 52.7% of the revenue at KSh 173.9 billion.

This diverse revenue stream highlights Safaricom’s innovative approach and its ability to adapt to changing market dynamics.

“Our vision towards becoming a purpose-led technology company has been a key factor in our investment in new technologies, which have enabled us to create more efficiencies and better customer engagement,” Ndegwa explained during the results announcement. “As a result of our razor-sharp focus on our customers, we are now a billion-dollar business in Kenya.”

Safaricom’s expansion into Ethiopia has been also marked by impressive milestones.

The active customer base in Ethiopia has doubled to 4.4 million, and the company has built a world-class network that is almost half the size of Kenya’s.

This growth trajectory positions Ethiopia as a future revenue driver for Safaricom.

“We are pleased with the commercial momentum in Ethiopia and proud that we have been able to deliver this with a Safaricom Ethiopia team that is 90% Ethiopians,” Ndegwa noted, emphasizing the importance of local talent in driving the company’s success in new markets.

The impressive financial results have also translated into tangible benefits for shareholders.

Safaricom announced a final dividend of 65 cents per ordinary share, bringing the total dividend payable for the financial year 2024 to one shilling and twenty cents per share, equivalent to KSh 48.08 billion.

This commitment to returning value to shareholders underscores the company’s robust financial health.

Safaricom Board Chairman Adil Khawaja has expressed his confidence in the company’s growth strategy: “As a result of this growth, we are pleased to recommend a substantial dividend payout to our shareholders. Our focus on transforming lives and delivering value continues to drive our performance.”

M-PESA remains a cornerstone of Safaricom’s success, with its revenue growing by 19.5% to KSh 140 billion in the financial year ended March 2024.

The platform has evolved from a person-to-person cash transfer service to a comprehensive financial ecosystem offering savings, credit, payments, international remittances, and investment services.

Safaricom’s commitment to enhancing the M-PESA platform is evident in its strategic initiatives.

“M-PESA has revolutionized financial services in Kenya and continues to be a significant revenue driver for Safaricom. We will continue to innovate and expand its capabilities to meet the evolving needs of our customers,” Ndegwa remarked at the results briefing.

Beyond its financial achievements, Safaricom remains committed to making a positive impact on the communities it serves.

The company’s Corporate Social Responsibility (CSR) initiatives, including the recently launched Mother and Child Hospital in Kisumu County, demonstrate its dedication to improving healthcare and supporting disaster relief efforts.

“Our purpose of transforming lives goes beyond business success. We are committed to supporting our communities through various CSR initiatives, ensuring that our growth positively impacts the lives of Kenyans,” Ndegwa emphasized during a recent community engagement event.

Looking ahead, Safaricom plans to continue its growth trajectory by leveraging new technologies and expanding its footprint in the region.

The company is poised to explore new opportunities and partnerships that will drive further innovation and customer satisfaction.

“We are excited about the future and the opportunities that lie ahead. Our focus remains on delivering exceptional value to our customers, shareholders, and communities as we continue to set new standards in the telecom industry,” Ndegwa concluded.