Safaricom reports a Ksh. 62.99 Billion net profit for the full year 2023

Safaricom has reported a Ksh. 62.99 billion net profit for the year ended March 31, 2024. This is a rise from the Ksh. 62.7 billion the company posted in a similar period last year.

Total revenue for the period under review grew to Ksh. 349 billion from Ksh. 310 billion in 2023. This was due to increase in revenue from different segments that included messaging at Ksh. 12 billion, mobile data at Ksh. 67 billion, and M-PESA revenue at Ksh. 140 billion. Voice revenue however reduced to Ksh. 80 billion from Ksh. 81 billion.

Safaricom’s direct costs increased to Ksh. 97 billion from Ksh. 92 billion in the previous period. Operating costs also increased to Ksh. 23 billion from Ksh. 19 billion that was reported in a similar period last year.

Peter Ndegwa, Safaricom PLC CEO said: “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. We are able to anticipate and serve our customers more intuitively, while engaging our communities to solve their societal challenges. As a result of our razor-sharp focus on our customers, we are now a billion-dollar business in Kenya.”

On Ethiopia, Safaricom CEO noted, “We have doubled our active customer base to 4.4M, we have built a world class network that is currently almost half the Kenya’s size and are on track to meet our licence obligations. We are hence pleased with commercial momentum in Ethiopia and proud that we have been able to deliver this momentum with a Safaricom Ethiopia team that is 90% Ethiopians.”

Adil Khawaja, Safaricom Board Chairman, “As a result of this growth, the board will recommend a final dividend of 65 cents per ordinary share bringing the total dividend payable for FY24 to one shilling and twenty cents per share, equivalent to Ksh.48.08 billion.”

Safaricom has also announced its support towards the flood’s victims through M-PESA Foundation. The Ksh. 30 million will be used to support the initial relief efforts that include vital supplies, food, temporary shelter, medicines, and emergency medical kits in affected areas.