Safaricom (SCOM) H1 2027 earnings summary

Executive summary

• H1 FY27 service revenue rose 13.1% to KShs 226.06Bn; EBITDA increased 27.5% to KShs 129.18Bn, with growth across Kenya and Ethiopia.

• EBIT rose 39.8% to KShs 91.14Bn and net income excluding minority interest grew 35.9% to KShs 58.15Bn.

• Kenya remained the earnings base; Ethiopia revenue expanded and EBITDA losses narrowed sharply as the business progressed toward break-even.

• Strategy execution focused on fintech, connectivity, fixed broadband, enterprise solutions, AI and Ethiopia’s path to EBITDA break-even.

Financial highlights

• Total revenue increased 14.2% to KShs 233.68Bn; service revenue grew 13.1% to KShs 226.06Bn, or 13.6% at constant currency.

• Group EBITDA rose 27.5% to KShs 129.18Bn; EBIT increased 39.8% to KShs 91.14Bn and net income excluding minority interest grew 35.9% to KShs 58.15Bn.

• Group operating free cash flow reached KShs 74.5Bn, up 59.1%; net cash generated from operating activities was KShs 91.92Bn versus KShs 64.74Bn in HY26.

• Kenya service revenue rose 11.3% to KShs 215.96Bn; EBITDA increased 13.3% to KShs 128.9Bn and net income rose 13.8% to KShs 66.27Bn.

• Ethiopia service revenue grew 71.6% to KShs 10.62Bn; EBITDA loss narrowed to KShs 434.4Mn from KShs 12.6Bn, and net loss excluding minority interest narrowed to KShs 8.8Bn.

Outlook and guidance

• FY27 guidance retained: Kenya EBIT KShs 195–199Bn, Ethiopia EBIT loss KShs 12–15Bn and Group EBIT KShs 180–187Bn.

• FY27 capex guidance retained at KShs 58–61Bn for Kenya, KShs 6–9Bn for Ethiopia and KShs 64–70Bn for the Group.

• H2 priorities include connectivity and payments, merchant and financial-services propositions, fixed and enterprise solutions, AI use cases and Ethiopia M-PESA adoption.

• Ethiopia focus is commercial growth, efficiency and better returns from the existing footprint; progress toward break-even depends partly on pricing implementation, FX conditions and execution.