Safaricom (SCOM) H1 2025 earnings summary

Executive summary

• Celebrated 24 years of operations, emphasizing innovation, sustainability, customer loyalty, and community impact.

• Defined a new 5-year vision to become Africa's leading purpose-led technology company by 2030.

• Delivered strong HY25 results, with double-digit growth in Kenya and accelerated commercial momentum in Ethiopia, despite FX and macroeconomic challenges.

• Group performance was impacted by significant Ethiopian Birr depreciation, but underlying results remained strong on a constant currency basis.

Financial highlights

• Group service revenue grew 13.1% YoY to KShs 179.9Bn, driven by M-PESA, mobile data, and fixed data.

• Kenya service revenue up 12.9% YoY to KShs 177.5Bn; EBIT up 18% to KShs 79.2Bn; net income up 14.1% to KShs 47.5Bn.

• Group net income declined 17.7% YoY to KShs 28.1Bn due to Birr depreciation; underlying net income up 21.7% YoY to KShs 36.7Bn.

• EBITDA for Kenya up 13.7% YoY to KShs 102.9Bn; operating free cash flow up 41.4% YoY to KShs 80.6Bn.

• Group capex rose 40.1% YoY to KShs 58.7Bn, with KShs 27.9Bn invested in Ethiopia.

Outlook and guidance

• Upgraded Kenya EBIT guidance to KShs 155-158Bn for FY25; group EBIT guidance at KShs 94-100Bn, reflecting Birr depreciation impact.

• Ethiopia EBITDA break-even now expected in FY27 due to FX reforms; commercial scale target of 15-20Mn customers and >4,000 sites.

• M-PESA expected to maintain double-digit growth; mobile connectivity revenues to grow in high single digits.

• Confident in delivering value to shareholders and customers, with continued focus on digitization and financial services.

• Plans to celebrate 25 years with new offers and products over the next 12 months.