Safaricom reports Ksh 34.2 Billion Half year profits

Nairobi , 

Thursday, 9 November, 2023. 

McCreadie Andias 

Kenya's Leading telecommunication company and largest company by Market Value has reported a profit increase for the first time in two years. 

Safaricom reported a 2.1 per cent profit increase in net Income amounting to Ksh 34.2 Billion in just six months. 

The profits are highly attributed to the company's entry into the Ethiopian Market earlier this year which contributed a Ksh 159.1 overall year to year revenue. 

In Ethiopia, the company has established a customer base of about 4.1 million users with a Network coverage in 22 cities, 1.2 user have subscribed to its Mpesa services in the country. 

Safaricom also reduced its prices Since 2020 where it has cut data prices by as much as 65%, outgoing calls by 44% and tariffs on its flagship mobile-money product, M-Pesa, by 61%, according to a statement.

“The reduced prices have seen our customers use more of our services,” Ndegwa said.

Income from M-Pesa, which accounts for about 42% of service revenue, with the company recording a 1.1 percent MPESA revenue growth by sh. 18. 3 Trillion while the Value of Fuliza reached Ksh 419 Billion. 

In the six months to September, there “was accelerated pressure on the consumer wallet” due to global and domestic factors that drove inflation, Chief Executive Officer Peter Ndegwa told investors on Thursday. Kenyan consumers are also constrained by rising taxes in a relatively weak economy.

“Businesses have also been under pressure having to deal with rising energy and foreign-exchange costs whilst balancing between operating an efficient business and also cushioning customers at a tough time,” Ndegwa said.

Safaricom’s shares, which have plunged 43% so far this year, rose 5.6% in Nairobi on Thursday. 

Mobile Data Usage increased by 12.5 percent due to increase in usage of mobile smartphones and daily internet adoption. 

Safaricom's Net income demonstrated a positive growth increasing by 10.9 percent year on year to Ksh 41.6 Billion with its CAPEX(Capital Expenditure) also increasing by Ksh 11.7 percent to Shs 41.9 Billion largely attributed to its market expansion.