Safaricom (NSE: SCOM) PLC cemented its position as a regional powerhouse today, announcing stellar financial results for the period ending March 31st, 2024. Not only did the company surpass market expectations and group guidance, but it also achieved a historic milestone – becoming the first company in East Africa to break past the coveted billion-dollar mark in earnings.

Financial Strength Across the Board:

  • Surpassing Expectations: Group Earnings Before Interest and Tax (EBIT) reached a staggering KShs 139.9 billion, exceeding the projected range (KShs 129 billion – 132 billion) and reflecting a 3.5% year-on-year growth despite Ethiopian startup costs.
  • Revenue Surge: Group revenue climbed an impressive 13.4% to reach KShs 335.3 billion.
  • M-PESA Remains King: M-PESA continued to be a significant driver of revenue, contributing a substantial 42.4% (KShs 140 billion) to the total.
  • Strong GSM Business: The GSM business also performed exceptionally well, contributing 52.7% (KShs 173.9 billion) to group revenue.

Safaricom Kenya Maintains Upward Trajectory:

  • Profitable Growth: Net income for Safaricom Kenya increased by 13.7% to KShs 84.74 billion.
  • Focus on Efficiency: Net income excluding minority interest saw a 1.2% increase to KShs 62.99 billion, demonstrating continued profitability.

Ethiopia Operations Show Promise:

  • Rapid Customer Acquisition: The active customer base in Ethiopia doubled to reach a promising 4.4 million.
  • Network Expansion: Safaricom Ethiopia has built a world-class network that is nearly half the size of Kenya’s, showcasing rapid infrastructure development.
  • Investing in Local Talent: The company’s commitment to Ethiopia is further emphasized by its workforce, with 90% of the team being Ethiopian nationals.

Looking Ahead:

Safaricom’s impressive performance is a testament to its robust financial health, strategic vision, and unwavering commitment to its customers. By continuously investing in new technologies, prioritizing customer needs, and leveraging the power of M-PESA, Safaricom is well-positioned for continued success in the years to come. The company’s dedication to social responsibility, as exemplified by its recent KShs 30 million contribution to flood relief efforts, further solidifies its positive impact on the East African region.

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Safaricom’s journey to becoming the first billion-dollar company in East Africa is a remarkable achievement, and it sets a new benchmark for regional businesses.

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Nigel Jr.
As a tech enthusiast and expert, Nigel Jr. is dedicated to providing in-depth and insightful content on all things technology. With a background in online journalism, product reviewing, and tech creation, Nigel has become a trusted source for all things tech.

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