File image of Safaricom CEO Peter Ndegwa
Safaricom PLC has reported strong growth in profitability for the six months to 30 September 2023, with the Kenyan business recording double-digit growth in net income at 10.9% to KES41.6 billion.
Overall, the Group’s net profit excluding minority interests recorded a positive net profit growth of 2.1% to KES 34.2 billion, compared to a decline of 10.6% in FY23, while the Group’s service revenue grew by 10%.
The strong performance comes on the back of a price reduction in the Kenyan business, which allows customers to do more for less. Since 2020, Safaricom has progressively reduced data prices by up to 65%, outgoing calls per minute by 44% and M-PESA tariffs by up to 61%.
Growth has also been supported by focused execution of the business strategy, including the launch of the youth-focused Safaricom Hook product and accelerated 5G rollout.
“We have delivered great results, largely by supporting our customers with improved value and reduced prices on our products and services. We understand that everyone is going through a challenging time and as a company, we are committed to helping our customers cope. The reduced prices have encouraged our customers to use more of our services, hence the double-digit growth in profitability and revenue,” said Safaricom CEO Peter Ndegwa.
The Ethiopian operations have met all key milestones, supported by accelerated commercial momentum, including the roll-out of M-PESA, which has seen the company register over 1.2 million customers on the platform in less than two months.
“This confirms what we have been saying about Ethiopia in terms of how it will significantly support our growth going forward. We are looking to maintain this momentum in the second half of the year,” he said.
With only 35% of Ethiopians financially included, Safaricom’s strategic vision is to deepen financial inclusion and promote a cashless economy in Ethiopia.
“We see more opportunities with M-PESA and mobile data, though coming off a small base. We are particularly impressed with the usage levels in mobile data. Such levels were only realized in Kenya after close to 10 years of operations,” Ndegwa added.
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