Safaricom Reports 17.7% Profit Decline

Safaricom PLC reported a net profit decrease of 17.7% to Sh28.1 billion for the half-year ending September 30, 2024, primarily due to the significant depreciation of Ethiopia's Birr. Despite this setback, the Kenyan unit saw a 14.1% increase in net profit to Sh47.5 billion, driven by a 12.9% rise in service revenue to Sh177.5 billion. The company's overall service revenue grew by 14% to Sh181.4 billion, bolstered by strong performances from M-PESA and mobile data services. CEO Peter Ndegwa emphasized the company's commitment to innovation and expansion, particularly highlighting M-PESA's contribution of 42.9% to total service revenue. The robust customer growth, with 52.01 million users, underlines Safaricom's resilience amid economic challenges. The performance reflects the company's strategic initiatives, including the launch of M-PESA Ratiba, contributing to its ongoing market influence in both Kenya and Ethiopia.