Safaricom breaks record with profit of Ksh140 billion

Safaricom PLC made a significant announcement on Thursday, May 9, 2024, revealing a remarkable profit achievement. The company reported a substantial profit of Ksh.139.9 billion in earnings before interest and tax for the period ending March 31, 2024.

This surge represents a notable 20% increase in profit, marking Safaricom as the pioneering company in East Africa to surpass the billion-dollar milestone in earnings. Notably, these earnings exceeded both market expectations and the group’s projected guidance range of Ksh.129 billion to Ksh.132 billion.

Safaricom CEO, Peter Ndegwa, highlighted the pivotal role of M-Pesa, stating that it now contributes over 40% to Safaricom’s service revenue. The company’s overall revenue also experienced a robust growth of 13.4%, reaching Ksh335.3 billion during the review period. M-Pesa alone contributed significantly, accounting for 42.4% of revenue at Ksh140 billion, while the GSM business contributed 52.7% at Ksh.173.9 billion.

Furthermore, Safaricom Kenya witnessed a commendable 13.7% increase in net income, totaling Ksh.84.74 billion, while the group’s net income, excluding minority interest, saw a 1.2% increase, reaching Ksh.62.99 billion.

During the report unveiling, Ndegwa attributed this outstanding performance to strategic investments in new technologies and the proficient utilization of data and analytics to enhance customer service.

Ndegwa emphasized, “Our unwavering commitment to customer satisfaction has propelled us to achieve the status of a billion-dollar business in Kenya.”