by: Enrico Casale | May 13, 2024
Safaricom, Kenya’s leading telecommunications company, reported a slight increase in profits. The company reported a profit of Sh62.99 billion, marking a modest increase from Sh62.26 billion a year earlier. However, Safaricom’s Ethiopian branch, in which the parent company holds a 51% stake, suffered a loss amounting to 21.7 billion, resulting in a decline in overall financial performance.
“We are extremely pleased with what we have been able to achieve as a group, despite the significant costs of starting our business in Ethiopia. We expect that from 2025, Ethiopia will begin to make a significant contribution to group-level growth for both top and bottom lines,” Safaricom said in a statement. The company expects Ethiopia to grow starting in 2025, contributing substantially to profits and revenue.
M-Pesa, Safaricom’s flagship mobile money service, has become the main revenue generator. Earnings rose to Sh139.9 billion, constituting 42% of Safaricom’s total services revenue, a notable increase from 19.36% a year earlier. The M-Pesa ecosystem witnessed further expansion, with transaction values and volumes increasing by 9.6% and 33.9% year-on-year, culminating in Sh40.2 trillion and Sh28.3 respectively billions of transactions.
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