M-Pesa, Ethiopia operations push Safaricom half-year profit to Sh58.2bn

NAIROBI, Kenya, Nov 5 – Safaricom’s net profit rose by 35.9 percent to Sh58.2 billion in the six months to September, helped by higher M-Pesa revenue and growth in its Ethiopia business. The company’s total service revenue increased by 13.1 percent to Sh226.1 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 27.5 percent to Sh129.2 billion. In Kenya, service revenue grew by 11.3 percent to Sh216 billion. Earnings before interest and tax increased by 13.7 percent to Sh101.8 billion, crossing the Sh100 billion mark for the first time in a half-year period. M-Pesa revenue rose by 13.6 percent to Sh100.1 billion, also passing the Sh100 billion mark for the first time in six months. Safaricom said 53 percent of all M-Pesa transactions were free during the period. The figure was higher for merchant payments, with 81 percent of Lipa na M-Pesa and Pochi la Biashara transactions attracting no charges. The company’s Ethiopia business recorded a 71.6 percent rise in service revenue to Sh10.6 billion, contributing 17 percent of the group’s service revenue growth. It had 15.4 million active customers over a three-month period, up 38.4 percent from a year earlier. Its EBITDA loss narrowed by 96.5 percent to Sh434.4 million as the business moved closer to breaking even. Safaricom Chief Executive Officer Peter Ndegwa said the company was targeting EBITDA break-even in Ethiopia by the end of the current financial year.