Safaricom Group reported strong financial results for the six months ended 30 September 2024, despite challenges such as economic disruptions, floods, and foreign exchange reforms in Ethiopia. The group achieved a 13.1% year-on-year (YoY) growth in service revenue, reaching KES 179.9 billion, up from KES 159.1 billion recorded in the same period the previous year. This growth was largely driven by M-PESA, mobile data, and fixed data. The total customer base increased by 7.8% YoY to 52.0 million, according to the quarterly statistics report by the Communications Authority of Kenya.
Key Market Segments in Kenya
- Voice and Messaging: Voice revenue grew by 4.8% YoY to KES 40.6 billion, supported by increased customer usage and a 10.6% YoY rise in the total customer base to 28.5 million. Messaging revenue grew by 8.0% YoY, aided by promotional campaigns. Combined, voice and messaging services contributed 26.4% of the group’s total service revenue.
- M-PESA: The M-PESA platform saw strong growth, with revenue increasing by 16.6% YoY to KES 77.2 billion. The popularity of SME-focused products, such as Pochi la Biashara and merchant overdrafts, played a significant role, leading to increased transaction volume and value. M-PESA now contributes 43.5% of Safaricom’s service revenue.
- Mobile Data: Mobile data revenue grew by 20.2% YoY, reaching KES 35.6 billion, driven by a growing customer base and increased device penetration. The company has promoted 4G device adoption through financing programs and affordable devices from its East Africa Device Assembly factory. Mobile data now represents 20.0% of the group’s service revenue.
- Fixed Service and Wholesale Transit: Revenue in this segment increased by 14.7% YoY to KES 8.5 billion, with strong growth in both consumer and enterprise connections. Fibre to the Home (FTTH) subscriptions rose by 17.8% YoY, while Safaricom’s broadband market share improved to 36.4%.
- Net Income and Capital Expenditure: Net income for Kenya, including Kenyan-based subsidiaries, grew by 14.1% YoY to KES 47.5 billion. Capital expenditure amounted to KES 58.7 billion, with significant investment directed toward Ethiopia to support ongoing expansion.
Key Market Segments in Ethiopia
Safaricom’s operations in Ethiopia recorded KES 4.1 billion in service revenue, with mobile data as the main contributor. The company reported 6.0 million active three-month customers and a growing user base for M-PESA services. Although the Ethiopian Birr’s depreciation impacted revenues, Safaricom continues to expand its network coverage across the country.
Safaricom also remains a major taxpayer, remitting KES 80.4 billion to the Kenyan government in duties, taxes, and fees for HY25, bringing its total contribution since inception to KES 1.4 trillion.
Safaricom CEO, Dr. Peter Ndegwa, commented, “We remain steadfast in our commitment to sustainability and investment in our communities through our Foundations, which empower us to impact the communities we serve positively.” He added, “As we look ahead, we are confident that we will deliver value to our shareholders and customers, remaining the digitization and financial services partner of choice for customers, enterprises, and the public sector through cutting-edge technology solutions.”
