Strong Customer Focus & Tech Investments Drive Record Performance
Safaricom PLC has announced its earnings before interest and tax for the year ending March 31, 2024, reaching KES 139.9 billion. Including startup costs from Safaricom Ethiopia, the group’s earnings stood at KES 94.9 billion, marking a 3.5% increase from the previous year. This result exceeded market predictions and the company’s own forecast of KES 129-132 billion. The success is attributed to strategies like customer segmentation, digital initiatives in the public sector, and investments in new technologies, enhancing data usage and analytics for improved customer service.
Peter Ndegwa, CEO of Safaricom PLC, expressed satisfaction with the group’s performance, particularly considering the substantial startup expenses in Ethiopia. He anticipates that starting from 2025, Ethiopia will significantly contribute to the group’s overall growth.
Safaricom PLC’s group revenue grew by 13.4% to KES 335.3 billion, with M-PESA and the GSM business contributing 42.4% and 52.7% respectively. The company’s net income in Kenya rose by 13.7% to KES 84.74 billion, while the group net income, excluding minority interest, increased by 1.2% to KES 62.99 billion.
Ndegwa highlighted the company’s shift towards being a purpose-led technology entity, focusing on new technologies to enhance efficiency and customer engagement. He emphasized the company’s ability to anticipate and meet customer needs, making it a billion-dollar business in Kenya.
Regarding Ethiopia, Ndegwa noted a doubling of the active customer base to 4.4 million and the development of a network nearly half the size of Kenya’s. He expressed satisfaction with the progress in Ethiopia, where 90% of the Safaricom Ethiopia team are locals.
Adil Khawaja, Chairman of Safaricom’s Board, announced a final dividend recommendation of 65 cents per share, totalling KES 48.08 billion for the fiscal year. Additionally, Safaricom pledged KES 30 million through the M-PESA Foundation to support flood victims with essential supplies and services.
Khawaja emphasized the company’s commitment to its purpose of transforming lives and increasing community engagement.
