Key highlights from Safaricom revenues

Safaricom increased its Service Revenue by 12.3 percent to Ksh281.11 billion and Earnings Before Interest and Tax (EBIT) by 13.5 percent to Ksh109.13 billion. Voice service revenue grew by 0.8 percent to Ksh83.21 billion; mobile data revenue grew by 8.1 percent to Ksh48.44 billion, while M-PESA revenue grew by 30.3 percent to Ksh107.69 billion.

Its CEO Mr. Peter Ndegwa said their strong growth and achievements this financial year are due to the strong strategy execution, a dedicated staff force, and the business commitment to prioritize the needs of our customers. “We will continue to be a sustainable purpose-led business as we transition to become a technology company by 2025.”

The continued focus on customers led to a 6.4 percent increase to 42.44 Million in one month active subscribers for the period, with customers growing across all revenue streams. Safaricom invested over Ksh39.34 billion in Capital Expediture (CAPEX) in Kenya to maintain and expand the network and ensure Kenyans enjoy reliable network coverage across the country and uninterrupted data services. Safaricom Plc also invested Ksh10.44 Billion in Ethiopia as we fast-track our network rollout plans. This brings the total CAPEX spend for the year under review to Ksh49.78 billion a 42.4 percent increase from last year.

M-PESA, which marked its 15th anniversary this year, hit the 30 million active customer mark in Kenya. A significant sign of M-PESA’s progress was the 63.4 percent growth of Lipa na M-PESA merchants to just below 500,000. M-PESA now has over 3.2 million businesses accepting payments under its portfolio, while the M-PESA business app has about 100,000 active businesses.

With the new business strategy and the renewed focus on the customer, Safaricom, in the new Financial Year, plans to accelerate new growth areas, delivering superior customer experience in order to be a purpose-led Technology Company by the end of 2025.

“The Board is encouraged by the recovery in the business from the pandemic in the past year. Two years into Safaricom’s new strategy, the Board continues to support the management in the business plans recording strong achievements in this financial year,” said Michael Joseph, Chairman, Safaricom Board of Directors

The key Safaricom highlights are below;

  • Service Revenue +12.3% to Ksh281.11 billion
  • Voice revenue +0.8% to Ksh83.21 billion
  • M-PESA revenue +30.3% to Ksh107.69 billion
  • Mobile data revenue +8.1% to Ksh48.44 billion
  • Total customer base +6.4% to Ksh42.44 million.
  • One-month active M-PESA customers +7.8% to Ksh30.53 million
  • One-month active mobile data customers +6.1% to Ksh25.22 million

Strong financial performance

  • EBIT (Earnings Before Interest and Tax) +13.5% to Ksh109.13 bilion.

 Net Income

  1. Safaricom Plc Kenya excluding Ethiopia Financing Costs (Ksh4.66 billion), +12.1% to Ksh77.01 billion.
  2. Safaricom Plc Kenya, +5.4% to Ksh72.35 billion
  3. Free Cash Flow -1.3% to K63.67 billion.

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