Safaricom Posts 55% Profit Jump, Boosted by Smaller Loss in Ethiopia

Kenya’s telecom giant Safaricom reported a 55% rise in half-year profit on Thursday. The growth was driven by strong performance in Kenya and a smaller loss in Ethiopia. The company posted a group operating profit of KSh 65.2 billion ($505.62 million) for the six months ending September. It also maintained its full-year guidance.

Safaricom’s Kenya operations remain the main profit driver. Revenue continues to grow steadily from mobile and financial services. Meanwhile, the Ethiopian market shows improvement. Losses there fell by 59% compared to the same period last year. The previous loss had been worsened by a sharp depreciation of the birr currency.

Safaricom entered Ethiopia in 2022. The government opened the previously tightly controlled telecom sector to foreign companies. The company sees Ethiopia’s large population as a major growth opportunity. Analysts believe the market will contribute more to profits in the coming years as the business scales.

Group service revenue rose to KSh 199.9 billion, up from KSh 179.9 billion a year earlier. M-Pesa, Safaricom’s mobile financial service, continues to perform strongly. Its revenue increased to KSh 88.1 billion, from KSh 77.2 billion previously. The service remains a core driver of growth and innovation for the company.

Safaricom is partly owned by South Africa’s Vodacom and Britain’s Vodafone. These partnerships bring international expertise and local knowledge. Analysts say the results show the company’s resilience. It has maintained strong growth despite currency challenges and regulatory hurdles abroad.

The results reflect Safaricom’s strategy. It is consolidating its lead in Kenya while cautiously expanding in Ethiopia. The company expects Ethiopia to add more to profits as operations grow.

As Africa’s telecom market becomes more competitive, Safaricom’s performance signals confidence. Adoption of mobile services and digital payments continues to rise. Innovations are helping the company reach new users. Safaricom looks set to maintain its strong growth trajectory across Kenya and the region.