Safaricom, Kenya's largest telco, increased its Group service revenue to almost US$3.2 billion in the financial year ending March 31, 2026, as strong performance in its home market more than compensated the drag of currency reforms and market-repair timing in Ethiopia.
The company revealed this during the release of its financial results on Thursday.
Kenya's service revenue increased by 10% to $3.1 billion, while Ethiopia provided 12.5% of total group service revenue growth, with subscriber numbers rising to 13.6 million on a network that now covers 60% of the country.
Group net income reached US$775 million for the period, with Kenya earnings before interest and tax growing 15.3% to US$1.41 billion.
“We delivered strong performance, with acceleration in the second half, surpassing Group guidance with outstanding Kenya performance offsetting the impact of currency reforms and the timing of market repair actions in Ethiopia,” said Peter Ndegwa, Group CEO, Safaricom PLC.
Safaricom declared a total dividend of Kenyan KES 2 per share,a 66.7% increase on the prior year, totalling approximately US$620 million. The payout comprises an interim dividend of 85 cents and a recommended final dividend of KES 1.15, pending shareholder approval.
M-PESA underpinned much of Kenya's outperformance, with active customers reaching 41 million and the platform generating US$1.41 billion in revenue for the year. Total group customers stood at 71.6 million.
Ethiopia's improving unit economics were a notable subplot to the headline numbers. The operation recorded narrowing start-up losses relative to the prior period, supported by 3,504 network sites.
‘’We have sustained strong growth in service revenue, driven by double digit growth in Kenya and accelerated growth in Ethiopia, while maintaining profitability despite continued investment in Ethiopia. At the same time, we are beginning to see the benefits of scale in Ethiopia, with improving commercial momentum and narrowing start up costs. This balance, growth, investment, and discipline, is exactly what the Board expects at this stage of our journey,” said Adil Khawaja, Chairman, Safaricom PLC.
Group CFO Dilip Pal said the company enters its second Vision 2030 year with execution momentum intact. "Ethiopia's performance shows reduced losses relative to the previous period, greatly boosting Group performance," he said.
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