By Aoma Keziah,
Safaricom PLC has reported it’s financial performance for the first half of 2024, driven by strategic investments in technology and growth across its service offerings. For the six-month period ending September 30, 2024, the group service revenue surged 13.1% to KES 179.9 billion, while group Earnings Before Interest and Taxes (EBIT) rose 1.8% to KES 42.2 billion. Net income attributable to equity holders amounted to KES 28.1 billion, with Safaricom’s Kenyan unit showing particularly robust growth, spurring overall gains.
Safaricom’s core operations in Kenya saw service revenue rise by 12.9% to KES 177.5 billion, resulting in an 18.0% increase in EBIT to KES 79.2 billion. This momentum extended to net income, which increased by 14.1% to KES 47.5 b.
Safaricom CEO Peter Ndegwa attributed these results to the company’s dedication to using technology to enhance value for customers.
“This performance, which comes at a time when we are marking 24 years of connecting and transforming Kenyans’ lives, reflects the relentless execution of our strategy. We are proud of the value that we have given our customers through the use of technology, and we will continue growing our core business while expanding into new services through our innovative spirit.” He stated.
Ndegwa further highlighted that their commitment as a company to data privacy gets global recognition and they are committed to preserving their customer’s privacy and provide a worry-free experience.
“The recent International Organization for Standardization (ISO) award on privacy Information Management System is a testament to this Commitment, the certification was issued after assessing Safaricom’s levels of implementation of customer support, billing services, M-PESA and data centre operations.” He remarked.
About their partnership with public sector in digitizing Kenya, he noted that they are using technology to drive digital inclusion, enabling the public to access essential services conveniently giving an example of digitizing the health sector, through development of an integrated hospital management information system which will enable citizens have an easier to access to healthcare, deepening financial inclusion by distributing funds for critical services like Inua Jamii, which benefits the vulnerable in communities, pointing out that they expect to reach over 2 million Kenyans with this program.
Safaricom’s flagship mobile connectivity services voice, data, and SMS contributed 52.2% of total revenue at KES 93.9 billion. Meanwhile, M-PESA, the company’s financial service platform, generated 42.9% of total revenue at KES 77.2 billion.
“The Board is pleased with the great performance recorded in the period under review. We remain focused on our vision of becoming Africa’s leading purpose-led technology company as we advance our propositions in both Ethiopia and Kenya.”Said Safaricom Board Chairman Adil Khawaja
Safaricom Ethiopia, where the company has expanded its network coverage to 46% of the population, also reported positive gains. The Ethiopian customer base grew by 47.3% to reach 6.1 million active users, with an average data consumption of 6.6 GB per user, compared to 4.1 GB in Kenya.
Despite challenges posed by Ethiopia’s foreign exchange reforms and hyperinflation, Safaricom Ethiopia implemented measures to mitigate financial impacts, including renegotiating foreign currency contracts, onboarding local suppliers, and reducing its expatriate workforce.
Safaricom’s continued investment in technology and digital transformation reinforces its commitment to delivering innovative solutions in the telecommunications sector, positioning the company for sustained growth in both established and emerging markets across East Africa.
