Safaricom (SCOM) Pre-close call summary

Executive summary

• Strategic direction remains focused on core connectivity, financial services, digital platforms, and scaling Ethiopia operations.

• Kenya business demonstrates resilience amid inflation and competitive pressures, with continued growth in M-PESA and connectivity.

• Ethiopia business is progressing toward commercial scale, with regulatory reforms supporting monetization and a path to EBITDA breakeven.

• Group maintains disciplined execution on costs, capital investment, and customer experience.

Trading performance and revenue trends

• Kenya sees strong demand for connectivity and digital services, with increasing smartphone penetration and data usage.

• M-PESA remains central to growth, with expanded use cases and tariff enhancements to boost affordability and merchant loyalty.

• Fixed broadband and 5G adoption are key growth drivers, with 5G now at one-third network penetration.

• Ethiopia reports strong customer growth, surpassing 15 million active users, and positive momentum in M-PESA adoption.

Profitability and margins

• Margin improvements in Kenya linked to reduced handset sales and shift to third-party device financing.

• Operational efficiency measures, such as advance fuel purchases and energy modernization, help mitigate inflation impacts.

• Group EBIT and CapEx guidance remain unchanged, with Ethiopia's major cash requirement cycle largely over.