Safaricom (SCOM) H2 2025 earnings summary

Executive summary

• Achieved double-digit growth in group 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 reforms and hyperinflationary accounting 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 billion total), consistent with the past three years, despite Ethiopia startup losses and FX headwinds.

• 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; excluding FX and hyperinflation, EBIT grew 16.2%.

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

• M-PESA revenue grew 15.2%, now 44.2% of total revenue; merchant payments and Pochi la Biashara drove growth.

• Mobile data revenue up 15.2%, fixed revenue up 12.9%, and connectivity revenue up 6.5%.

• Operating cost rose 14.4% to KES 68.1 billion, mainly from network expansion and payroll.

Outlook and guidance

• FY26 group EBIT projected at KES 144-150 billion, with Kenya EBIT guidance at KES 170-173 billion and Ethiopia EBIT loss to reduce to KES 23-26 billion.

• Kenya CapEx to remain robust at KES 54-57 billion; Ethiopia CapEx to decline to KES 18-21 billion as peak investment phase ends.

• Ethiopia customer base targeted to reach 15-17 million 90-day active customers by FY26.

• Ethiopia expected to be EBITDA positive by FY27.

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