Safaricom full-year net income drops on Ethiopia spending

By Elijah Odhiambo

Safaricom has recorded a 22.2 percent drop in net profit for the full year ended March 31 2023, the third consecutive decline in earnings on heavy capital investments in Ethiopia.

The company’s net profit dropped to Ksh52.5 billion from Ksh67.5 billion during a similar period last year.

It came on the back of increasing inflationary pressure that has impacted most households as well as the 2022 general elections.

Safaricom Chief Executive Officer (CEO) Peter Ndegwa explained the company experienced difficult economic conditions during the period under review .

“This year, we all experienced tough headwinds, including high inflation, a depreciating shilling, severe drought, and failed rain seasons among others,” Ndegwa stated as he highlighted the company’s performance.

Voice revenue underperformed with a drop of 2.6 percent from Ksh81.1 billion.

“We have delivered a solid set of results despite the tough operating environment occasioned by slowdown in business activity in an election year in Kenya, tough macro environment as well as change in mobile termination rates which impacted our voice revenues significantly,” Safaricom CEO Peter Ndegwa said.

Whereas M-Pesa revenue grew 8.8 percent to Ksh117.2 billion, mobile data went up to Ksh54 billion, representing a 11.4 percent rise.

“The business is stable and regained a strong positive momentum in the second half of the year,” Ndegwa added.

“Looking into the future, we passionately believe that our business is well-positioned to support our customers and provide technology solutions as we transition into a purpose-led technology organization in line with our 5 YR strategy.”

Key Highlights (including Ethiopia)

  • Service Revenue increased by 5.2 percent to Ksh295.7 billion.
  • Voice revenue declined by 2.6 percent to Ksh81.1 billion.
  • M-PESA revenue grew by 8.8 percent to Ksh117.2 billion.
  • Mobile data revenue increased 11.4 percent to Ksh54.0 billion.
  • Total customer base increased by 8.1 percent to 45.9 million.
  • One-month active M-PESA customers increased by 5.2 percent to 32.1 million.
  • One-month active mobile data customers increased by 7.0 percent to 26.1 million.

Net Income

  1. Safaricom Group excluding Minority Interest declined by 10.6 percent to Ksh62.3 billion
  2. Safaricom Plc Kenya increased by 3.0 percent to Ksh74.5 billion
  3. Safaricom PLC operating free cash flow increased by 4.3 percent to Ksh115.7 billion.


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