Safaricom PLC reported an 11.2% increase in total revenue to KES 388.7 billion ($3 billion) for the financial year ending March 31, 2025, with net income rising 10.8% to KES 69.8 billion.
The company will distribute KES 48.08 billion in dividends, comprising a final dividend of KES 0.65 per share and an interim dividend of KES 0.55 per share.
The performance was driven by innovation across Safaricom’s product portfolio, expansion into Ethiopia, and over KES 18 billion invested in education, health, environment, and economic empowerment initiatives over the past five years.
This period also marked the completion of Safaricom’s five-year strategy, transitioning from a telecommunications provider to a technology company through enhanced technology adoption and digitisation efforts in Kenya and Ethiopia.
“We have delivered excellent group performance with double-digit growth in both revenue and profit. These results reflect our team’s dedication, customer loyalty, and strategic strength,” said Dr. Peter Ndegwa, Safaricom PLC CEO.
Group Earnings Before Interest and Taxes (EBIT) grew 29.5% to KES 104.1 billion, with Ethiopia contributing nearly 10% to total revenue.
Safaricom Ethiopia doubled its customer base to 8.8 million, operating 3,141 network sites, with 2.8 million customers using M-PESA, transacting over KES 20.6 billion.
The Ethiopian business is expected to reach profitability by FY 2027, having passed its peak investment phase.
In Kenya, service revenue increased 10.5% to KES 364.3 billion. M-PESA, marking its 18th year, generated KES 161 billion, accounting for 44.2% of service revenue with a 15.2% year-on-year growth, driven by diversification into wealth management and credit solutions.
Connectivity revenue grew 6.5% to KES 185.2 billion, with mobile data revenue up 15.2% to KES 72.9 billion due to increased 4G adoption and voice revenue rising 1.6% to KES 80.8 billion, defying global trends.
“This year’s results lay the foundation for our vision to become Africa’s leading purpose-led technology company by 2030. We are entering a new growth phase, leveraging innovation for social impact and shaping the future of Kenya, Ethiopia, and beyond,” Dr. Ndegwa added.
Key Highlights – Safaricom PLC (Including Ethiopia)
- Total Revenue: +11.2% to KES 388.7 billion
- Service Revenue: +10.8% to KES 371.4 billion
- Voice Revenue: +1.8% to KES 81.9 billion
- M-PESA Revenue: +15.1% to KES 161.1 billion
- Mobile Data Revenue: +16.5% to KES 78.5 billion
- Net Income (Excluding Minority Interest): +14.2% to KES 80.1 billion
- Safaricom Kenya Net Income: +12.7% to KES 95.5 billion
- Operating Free Cash Flow: +15.8% to KES 148.9 billion
Ethiopia Expansion Highlights
Safaricom expects earnings growth of up to 50% this year, driven by customer acquisition in Ethiopia, where losses are projected to narrow significantly to KES 23 billion.
The company targets group earnings before interest and tax of up to KES 150 billion ($1.16 billion) by March 2026.
In Ethiopia, despite a 56% currency devaluation impacting net income by KES 20.5 billion, the loss before interest, tax, depreciation, and amortisation halved to KES 21.4 billion. Safaricom anticipates this unit will be EBITDA-positive by FY 2027.
“The Ethiopian business is gaining momentum, contributing 9% to group service revenue,” said CFO Dilip Pal.
“We are focused on customer acquisition, with plans to double our 8.8 million customer base this year, supported by low pricing and potential for industry-wide price increases,” Dr. Ndegwa noted.
