Safaricom posts profit lose

Safaricom posts profit lose

 

For the full year ended March 2023, Safaricom reported a 22.2 percent reduction in net profit; this is the third straight decline in profitability attributable to significant capital investments in Ethiopia.

For the full year ended March 2023, Safaricom reported a 22.2 percent reduction in net profit.

The performance data was made public on Thursday morning at the same time that Ethiopia’s financial watchdog, the National Bank of Ethiopia, said that the telco had been granted a license to introduce M-Pesa mobile money services across the nation. At the current exchange rate, the license cost Safaricom $150 million (Sh20.5 billion).

About seven months ago, Safaricom began operating in Ethiopia. The company anticipates that after four years of operation, the unit will become profitable. Net loss for the division was Sh21.7 billion.

Safaricom posts profit lose

The Kenyan division reported a profit of Sh74.5 billion, helped by the rapid expansion of mobile data and mobile money.

 

M-Pesa revenue increased by 8.8% to Sh117.2 billion, while mobile data revenue increased by 10.7% to Sh53.6 billion, crossing the Sh50 billion threshold for the first time.

 

Sh0.62 per share is the recommended final dividend by the board.

A 38.3% increase in M-Pesa revenue to Sh107.7 billion, greater commercial activity, and a return to charging for transactions under Sh1,000 all contributed to the performance. Service revenue also increased by 12.3% to Sh281 billion.

 

Mobile data income increased by 8.1 percent to Sh44.64 billion during the review period, while fixed service and wholesale transit revenue jumped by 18.3 percent to Sh11.24 billion.

While total revenue grew by 12.9 percent to Sh298.08 billion, helped by growth in M-Pesa, mobile data and fixed service, increased costs piled pressure on the bottom-line.

 

Operating expenses increased by 19.9 percent to Sh55.18 billion from Sh46 billion a year earlier, while direct costs rose by 14.3 percent or Sh11.5 billion to Sh91.47 billion.

 

 

Safaricom posts profit lose

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