NAIROBI, Kenya – Kenya’s leading telecommunications company, Safaricom PLC, announced a notable 21.7% increase in net profit for the first six months of the year, attributing the growth to a robust performance in its Kenyan unit.
The telco’s Group service revenue rose 14%, reaching an impressive Sh181.4 billion, marking the company’s highest half-year revenue to date.
Unveiling the financial results on Thursday morning, the Nairobi Securities Exchange-listed firm reported a Sh36.7 billion comprehensive net profit for the period.
Domestically, Safaricom’s Kenyan unit saw a 14.1% rise in net profit to Sh47.5 billion, with service revenue jumping 12.9% to Sh177 billion.
Earnings before interest and tax (EBIT) for the unit increased by 18%, totaling Sh79.2 billion.
“This performance, which comes at a time when we are marking 24 years of connecting and transforming Kenyans’ lives, reflects the relentless execution of our strategy,” said Safaricom CEO Peter Ndegwa. “We are proud of the value that we have given our customers through the use of technology, and we will continue growing our core business while expanding into new services through our innovative spirit.”
However, the group’s net earnings were dampened by the financial struggles in Ethiopia, where devaluation of the local currency has impacted revenue.
Safaricom Ethiopia’s net earnings fell by 17.7% to Sh28.1 billion as the Ethiopian birr depreciated 30% against the U.S. dollar.
The currency’s decline follows the Ethiopian government’s decision to ease foreign exchange restrictions as part of its efforts to secure a $10.7 billion loan from the International Monetary Fund (IMF) and World Bank.
The telco’s Group service revenue rose 14%, reaching an impressive Sh181.4 billion, marking the company’s highest half-year revenue to date.
Unveiling the financial results on Thursday morning, the Nairobi Securities Exchange-listed firm reported a Sh36.7 billion comprehensive net profit for the period.
Domestically, Safaricom’s Kenyan unit saw a 14.1% rise in net profit to Sh47.5 billion, with service revenue jumping 12.9% to Sh177 billion.
Earnings before interest and tax (EBIT) for the unit increased by 18%, totaling Sh79.2 billion.
“This performance, which comes at a time when we are marking 24 years of connecting and transforming Kenyans’ lives, reflects the relentless execution of our strategy,” said Safaricom CEO Peter Ndegwa. “We are proud of the value that we have given our customers through the use of technology, and we will continue growing our core business while expanding into new services through our innovative spirit.”
However, the group’s net earnings were dampened by the financial struggles in Ethiopia, where devaluation of the local currency has impacted revenue.
Safaricom Ethiopia’s net earnings fell by 17.7% to Sh28.1 billion as the Ethiopian birr depreciated 30% against the U.S. dollar.
The currency’s decline follows the Ethiopian government’s decision to ease foreign exchange restrictions as part of its efforts to secure a $10.7 billion loan from the International Monetary Fund (IMF) and World Bank.
