Safaricom sets record after hitting Sh140bn operating profit

Giant telco Safaricom's operating profit for the year ended March 2023 rose by 20% to Sh140 billion.

The posting makes Safaricom the first company in East Africa to hit past a billion-dollar mark in earnings.

Safaricom CEO Peter Ndegwa said M-Pesa officially crossed the 40 per cent mark in contributing to Safaricom's service revenue.

Safaricom's net earnings for the year ended March 31, 2024 dropped by 23 per cent to Sh42.6 billion compared to Sh52.4 billion.

The firm attributed the drop to the tough operating environment during the year under review, characterised by forex volatilities that saw the shilling drop to lowest levels against major international currencies.

The telco's gross earnings dropped to Sh84 billion from Sh88 billion the previous year.

M-Pesa was the biggest contributor to the firm's service revenue, officially crossing the 40 per cent mark.

The mobile money arm of the listed telco's total earnings rose to Sh139.9 billion, representing 42 per cent of Safaricom's total service revenue.

This is an increase from 19.36 per cent the previous year.