Safaricom has released its new half-year financial report leading to September 2024 recording a profit fall of 17.7% from KES 34.1 billion to KES 28.1 billion citing it as a result of the decline of the birr, Ethiopia’s currency.
According to the green company, the hit was worth KES 17.5 billion as the birr took a hit of 106.3% over last year. These events forced Safaricom to revalue its liabilities including foreign currency credit and lease agreements.
However, this hit was cushioned by Safaricom’s underlying business like its Kenyan operations which recorded a rise in revenue by 12.9% to KES 177.5 billion in the same six-month period.
Revenues from mobile connectivity services like voice and mobile & fixed data grew from KES 90.8 billion to KES 91.3 billion. M-PESA also recorded a revenue growth from KES 73.7 billion to KES 77.2 billion as usage continued to grow.
The revenue growth has been attributed to the improved usage and average revenue per customer (ARPU) despite the telco’s decision to bundle up the cost of its services.
According to Peter Ndegwa, Safaricom Plc’s CEO, the company’s performance remains strong amid the uncertainty in the Ethiopian operations.
“On an underlying basis, our business is fantastic with the show of real, strong momentum in Kenya. Most importantly we are proud of the value we have been able to offer to our customers,” he stated.
“We will continue simplifying our customer journeys and will intensify our focus on new growth areas to continue our momentum in the second half of the year.”
