Safaricom's net profit drops again as inflation bites
This has been attributed to inflation pressures on customers' spending and high investment cost in Ethiopia.
Safaricom PLC has reported a 10.6 per cent decline in profit after tax for the year ended March 2023.
This has been attributed to inflation pressures on customers' spending and high investment cost in Ethiopia.
Even so, the revenue growth was underpinned by robust growth in M-Pesa and data revenue.
M-Pesa now contributes to 39.7 per cent of Safaricom's revenue and mobile data contributes 18.2 per cent.
The telco reported a net earning of Sh62.3 billion during the year under review compared to Sh67.49 billion in the same period last year.
The firm's service revenue closed the year at Sh297.2 billion (adjusted for mobile termination rates impact), 5.72% up year-on-year. Without adjustment, it is Sh295.2 billion.
This is the firm's third straight drop in a row after it posted a 6.8 per cent profit retreat in 2021 to Sh68.67 billion, which was the first in nine years.