Safaricom (SCOM) H1 2025 earnings summary

Executive summary

• Celebrated 24 years of operations, launching a Silver Jubilee campaign and focusing on innovation, sustainability, and community investment.

• Delivered strong HY25 results with double-digit growth in Kenya and accelerated commercial momentum in Ethiopia, despite FX headwinds from Birr depreciation and economic disruptions.

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

• Sustainability and social impact initiatives remain central, with significant investments in green energy, digital inclusion, and community projects.

Financial highlights

• Kenya service revenue grew 12.9% YoY to KShs 177.5Bn; EBITDA up 13.7% to KShs 102.9Bn, EBIT up 18% to KShs 79.2Bn, and net income up 14.1% to KShs 47.5Bn.

• Group service revenue rose 13.1% YoY to KShs 179.9Bn; underlying net income up 21.7% YoY, but reported net income down 17.7% YoY to KShs 28.1Bn due to Birr depreciation.

• Free cash flow in Kenya surged 73.2% to KShs 51.3Bn; operating free cash flow up 41.4% YoY to KShs 80.6Bn.

• Group capex rose 40.1% YoY to KShs 58.7Bn, with KShs 27.91Bn invested in Ethiopia.

• Debt position declined 10% to KShs 80.7Bn; net debt/EBITDA at 0.28x.

Outlook and guidance

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

• Ethiopia EBIT loss revised to KShs 61–58Bn; CapEx guidance increased to KShs 28–31Bn.

• Ethiopia EBITDA breakeven now expected in FY27 due to currency headwinds; commercial scale target of 15–20Mn customers and >4,000 sites.

• Kenya expected to maintain double-digit M-PESA and fixed revenue growth, high single-digit mobile growth, and stable margins.

• Ethiopia customer guidance maintained at 7–10Mn by year-end, with M-PESA users targeted at 1Mn.