Nairobi-listed Safaricom has announced an 11.2 per cent
growth in total revenue to Sh388.7 billion ($3 billion) for the financial year
ending March 31, 2025, as continued business diversification paid off.
Following these results, Safaricom will pay out Sh48.08
billion in dividends to its shareholders for the year, adding a final dividend
of 65 cents per ordinary share to the interim dividend of 55 cents per ordinary
share already paid out.
The strong results were achieved through sustained
innovation across TechCo’s product portfolio, expansion into Ethiopia, and
continued support to communities by investing more than Sh18 billion in
education, health, environment and economic empowerment initiatives over the
last five years.
The reporting period also marked the end of Safaricom’s
five-year strategy cycle, which saw the company transform from a
telecommunication business to a technology company through accelerated technology
adoption and greater focus on digitising Kenya and Ethiopia.
“We have delivered excellent group performance with double-digit growth on both top and bottom line. This strong set of results reflects the dedication of our teams, the loyalty of our customers, and the strength of our strategy,” CEO Peter Ndegwa said.
The group Earnings Before Interest and Taxes also reported
an impressive growth of 29.5 per cent to Sh151 billion.
Ethiopia contributed almost 10 per cent to the group’s
revenue, with management noting that the business has moved past the peak
investment phase and is expected to turn to profitability by the financial year 2027.
On the subscriber numbers, Safaricom Ethiopia has more than
doubled the customer base to 8.8 million with over 3,141 sites in operation.
In Kenya, service revenue grew by 10.5 per cent to Sh364.3
billion.
M-PESA, which turned 18 last year, delivered Sh161 billion,
contributing 44.2 per cent of Kenya’s service revenue.
The year-on-year growth of 15.2 per cent was driven by
diversification beyond payments, with a growing focus on wealth management and
credit solutions.
Kenya’s connectivity business also grew by 6.5 per cent to
Sh185.2 billion, contributing 50.8 per cent of service revenue.
This was driven by mobile data revenue, which grew by 15.2
per cent to Sh72.9 billion as a result of increased 4G uptake, while voice
revenue bucked global trends to grow by 1.6 per cent to Sh80.8 billion.
“This year’s results are more than a reflection of past
performance; they are a foundation for our vision of becoming Africa’s leading
purpose-led tech company by 2030. We are entering a new phase of growth, and we
will continue harnessing innovation for social good and shaping the future of
Kenya, Ethiopia and beyond,” Ndegwa noted.
