Safaricom (SCOM) H2 2025 earnings summary

Executive summary

• Achieved double-digit growth in revenue and net income, with group revenue up 11.2% to KES 388.7 billion and net income up 10.8% to KES 69.8 billion, despite currency and hyperinflationary impacts in Ethiopia.

• Kenya business delivered strong results: revenue up 11.4% to KES 381.2 billion, EBIT up 13% to KES 158.1 billion, and net income up 12.7% to KES 95.5 billion.

• Ethiopia business contributed 9% to group service revenue growth, with active customers doubling and commercial momentum accelerating.

• Maintained dividend payout at KES 1.20 per share (KES 48.08 billion total), consistent with the last three years, despite Ethiopia startup losses and FX reforms.

• Transitioned to Vision 2030 strategy, focusing on technology transformation, customer experience, and expansion in Ethiopia.

Financial highlights

• Group EBIT grew 29.5% to KES 104.1 billion, with Kenya EBIT at KES 158.1 billion (up 13%).

• M-PESA revenue grew 15.2%, now contributing 44.2% of total revenue; merchant payments revenue tripled to KES 2.2 billion.

• Mobile data revenue up 15.2% year-over-year, now 20% of service revenue.

• Fixed revenue up 12.9% to KES 17.1 billion, with home segment up 16.6%.

• Free cash flow grew 15.7% year-over-year to KES 76.1 billion; net debt-to-EBITDA ratio at 0.31x.

Outlook and guidance

• FY 2026 group EBIT projected at KES 144–150 billion, with Kenya EBIT guidance at KES 170–173 billion.

• Ethiopia EBIT loss expected to reduce to KES 23–26 billion, with customer base targeted to double to 15–17 million.

• Kenya CapEx to remain robust at KES 54–57 billion; Ethiopia CapEx to decrease to KES 18–21 billion as it exits peak investment phase.

• Ethiopia expected to be EBITDA positive by FY 2027.

• Strategic priorities include scaling tech solutions, accelerating Ethiopia profitability, and defending core market share.