Safaricom, Kenya’s leading telecom operator, has seen a significant boost in its financial performance for the fiscal year ending March 2025. The company reported a net profit of $540 million, marking an 11% increase from the previous year. This growth was fueled by strong performance in Kenya and a notable reduction in losses from its Ethiopian operations.
Ethiopia, where Safaricom has been expanding its presence, saw a remarkable turnaround with losses decreasing by over 50%. The Ethiopian unit contributed nearly 10% to the group’s revenue, showcasing the potential for growth in the region. Safaricom’s customer base also saw a substantial increase, reaching 57.1 million, reflecting the company’s successful market penetration strategy.
Revenue for Safaricom reached a record $3 billion, with mobile data and M-Pesa services playing a significant role in driving growth. M-Pesa, in particular, accounted for 44.2% of Kenya’s service revenue, highlighting its importance in Safaricom’s business model. The company’s efforts to expand its services and reach more customers have paid off, with positive results reflected in its financial performance.
Looking ahead, Safaricom is optimistic about its future prospects. CEO Peter Ndegwa projects a potential 50% increase in earnings before interest and taxes (EBIT) for the upcoming fiscal year. The company aims to achieve profitability in Ethiopia by 2027, as it continues to invest in infrastructure and enhance its service offerings in the region.
Despite challenges like currency depreciation and economic disruptions in Ethiopia, Safaricom’s strategic investments and focus on digital services have positioned it for sustained growth. The company’s ability to adapt to complex regional markets and deliver innovative solutions has been key to its success.
Safaricom’s latest financial results underscore its resilience and commitment to driving growth in both Kenya and Ethiopia. With a strong foundation in place and a clear vision for the future, Safaricom is well-positioned to continue its upward trajectory in the telecommunications industry.
