Safaricom (SCOM) H2 2024 earnings summary

Executive summary

• FY24 Kenya EBIT rose 20.4% YoY to KShs 139.9Bn, above KShs 129–132Bn guidance; Kenya service revenue grew 11.7% to KShs 329.8Bn.

• Group service revenue reached KShs 335.4Bn, up 13.4% YoY; net income excluding minority interest was KShs 63.0Bn, up 1.2%.

• FY24 priorities included Kenya core growth, Ethiopia commercial execution, financial inclusion and digital services; FY25 guidance targets group EBIT of KShs 103–109Bn.

Financial highlights

• Kenya EBITDA was KShs 187.0Bn, up 16.6% YoY; EBIT was KShs 139.9Bn, up 20.4%; net income was KShs 84.7Bn, up 13.7%.

• Kenya service revenue increased 11.7% YoY to KShs 329.8Bn; adjusted for MTR changes, growth was 12.1%.

• Group reported EBIT rose 3.5% YoY to KShs 94.9Bn, while group capex was KShs 93.5Bn, down 2.7% excluding hyperinflationary impact.

• Free cash flow was KShs 76.1Bn, up 15.7% YoY; operating free cash flow rose 11.2% to KShs 128.6Bn.

Outlook and guidance

• FY25 EBIT guidance: Kenya KShs 149–152Bn, Ethiopia KShs (46–43)Bn and group KShs 103–109Bn; all figures exclude IAS 29.

• FY25 capex guidance: Kenya KShs 52–55Bn, Ethiopia KShs 21–24Bn and group KShs 73–79Bn.

• Kenya medium-term targets include double-digit M-PESA and fixed growth, high-single-digit mobile connectivity growth, stable EBITDA margin and stable capex intensity.

• Ethiopia targets EBITDA breakeven in FY26, 15–20Mn commercial-scale customers and more than 4,000 sites; FY25 targets include 7–10Mn 90-day mobile customers and 3,500 sites.