Safaricom, Kenya’s biggest telecoms operator, reported “outstanding” financial results for the full year ending March 31st, 2024, the company said on Thursday.
Despite significant startup costs in Ethiopia, Safaricom’s EBIT (earnings before interest and tax) excluding Ethiopia reached KShs 139.9 billion, exceeding market expectations and the company’s guidance range (KES129billion-132billion). This represents a 3.5% year-on-year growth at the group level.
The Group’s revenue grew by 13.4% to KShs 335.3 billion. M-PESA contributed a significant 42.4% of revenue (KES 140 billion), while the GSM business contributed 52.7% (KES173.9 Billion).
Safaricom Kenya’s net income increased by 13.7% to KES 84.74 billion. Group net income, excluding minority interest, also showed a positive trend, growing by 1.2% to KES 62.99. Investments in new technologies and data analytics were crucial in driving efficiency and customer understanding.
“We believe the worst is behind us from the group’s financial point of view. When you look at the group numbers, you have to look at Kenya and Ethiopia separately because Ethiopia is in an investment phase and with such large greenfield investments in the last two years, it is expected to have losses at the start,” said Mr Dilip Pal, Safaricom Chief Finance Officer.
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Safaricom PLC Income Statement |
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| Item (All figures in Bns) | FY’2023 | FY’2024 | y/y change |
| Total Revenue | 310.9 | 349.4 | 12.4% |
| Operating costs | (171.0) | (186.2) | 8.8% |
| EBITDA | 139.9 | 163.3 | 16.8% |
| Depreciation & Amortization | (54.9) | (82.9) | 51.2% |
| Operating Profit | 85.0 | 80.3 | (5.5%) |
| Net Finance Costs | (7.1) | (16.6) | 134.8% |
| Profit Before Tax | 88.3 | 84.7 | (4.1%) |
| Profit After Tax | 52.5 | 42.7 | (18.7%) |
| Dividend Per Share | 1.2 | 1.2 | 0.0% |
| Payout Ratio | 47.3% | 61.0% | |
| Dividend Yield | 7.7% | 7.5% | |
Source: Safaricom FY’2024 Financial Report
CEO Peter Ndegwa highlighted that this focus transformed Safaricom Kenya into a “billion-dollar business.”
“We had an outstanding year in Kenya. We also outperformed group guidance, which was a revised guidance at the group level. We are also encouraged by our commercial progress in Ethiopia. Our Kenyan operation is now a one-billion-dollar business with operating profit hitting KES 140 billion,” Mr Ndegwa noted.
Safaricom doubled its active customer base in Ethiopia to 4.4 million. They built a significant network and are on track to meet license obligations. Notably, the Ethiopian operation team is 90% Ethiopian, showcasing their commitment to local talent.
“We have doubled our active customer base to 4.4M, built a world-class network that is currently almost half Kenya’s size and is on track to meet our licence obligations. We are pleased with the commercial momentum in Ethiopia and proud that we have delivered this momentum with a Safaricom Ethiopia team that is 90% Ethiopians.”
Safaricom maintains dividend
The board recommended a final dividend of 65 cents per share, bringing the total FY24 dividend to KES 1.20 per share (equivalent to KES.48.08 billion).
Additionally, Safaricom announced support for flood victims through a KShs 30 million contribution from the M-Pesa Foundation.
Safaricom is confident that Ethiopia will significantly contribute to top and bottom-line growth at the group level starting in 2025.
“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,” added Ndegwa.
1 Comment
This is an economic heist against poor Kenyan citizens, it’s time we call off this British company swindling Kenyans right left and Centre.