Safaricom Plc, Kenya’s leading telecommunications operator, continues to demonstrate robust financial performance and strategic growth, solidifying its position in the East African market.
Financial Performance Highlights:
Earnings Before Interest and Tax (EBIT): For the fiscal year ending March 2024, Safaricom reported an EBIT of KShs 139.9 billion, marking a 20.4% year-on-year increase. This milestone positions Safaricom as the first company in Eastern Africa to surpass $1 billion in EBIT.
Profit After Tax (PAT): The company achieved a PAT of KShs 84.7 billion, reflecting a 13.7% growth compared to the previous year.
Service Revenue: Safaricom’s service revenue grew by 13.4% year-on-year to KShs 335.35 billion, driven by strong performances in M-PESA, mobile data, and fixed data services.
M-PESA’s Continued Dominance:
M-PESA, Safaricom’s mobile money platform, remains a significant revenue driver, contributing 42.4% to the company’s total service revenue. In the year ending March 2024, M-PESA revenue increased by 19.4% to KShs 139.9 billion, up from KShs 117.2 billion the previous year.
Strategic Initiatives and Outlook:
Safaricom has been proactive in expanding its services and infrastructure. The company secured a $117 million sustainability-linked loan from a consortium of local banks to invest in projects such as converting transmission sites to renewable energy.
In Ethiopia, Safaricom’s operations have shown promising growth, with active customer numbers doubling to 4.4 million. The company anticipates that its Ethiopian venture will break even by the end of 2026, contributing significantly to group growth from 2025.
Conclusion:
Safaricom’s strong financial results and strategic investments underscore its commitment to growth and innovation. As the company continues to expand its footprint in East Africa, it remains well-positioned to capitalize on emerging opportunities in the telecommunications and financial services sectors.
The Elliot wave chart above shows that SCOM has completed primary wave 2 and is setting up for wave 3. The move from KShs11.5 to KShs19.3 unfolds as a 3 waves A-B-C and can be seen as wave 1 of a leading diagonal completing in wave 2.
If this count is correct, then SCOM will have to complete the C wave of the A-B-C and then commence a rally for larger C wave to complete Wave 3 with a target of KShs23.7