• Between June and September 2024, the Ethiopian birr weakened by 106.3% against the US dollar, impacting Safaricom’s capex creditors and lease agreements
• Safaricom chief executive officer (CEO) Peter Ndegwa said the Kenyan unit made up for the company’s loss in Ethiopia
• The telco’s Kenyan division reported a net profit of KSh 47.5 billion, which represents an increase of 14.1%

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.

Safaricom’s profit in the six months to September 2024 declined by 17% to KSh 28.1 billion after the Ethiopian birr depreciated against the United States (US) dollar.

How Ethiopian birr’s depreciation affected Safaricom

According to the telco’s half-year results, it took a hit of KSh 17.5 billion during the period under review.

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Safaricom announces KSh 47.5 billion half-year profit

Between June and September 2024, the Ethiopian birr weakened by 106.3% against the US dollar, impacting the company’s capex creditors, lease agreements, and foreign-denominated borrowings.

Safaricom chief executive officer (CEO) Peter Ndegwa said the Kenyan unit made up for the company’s loss in Ethiopia.

“Safaricom Kenya’s service revenue hit KSh 177.5 billion (+12.9%), with earnings before interest (EBIT) and tax up 18%, and net income up 14.1%. Despite challenges from birr depreciation, the group showed a 31.9% increase in EBIT and 21.7% growth in net income,” Ndegwa stated during the release of the results on Thursday, November 7.

What was Safaricom’s profit in Kenya?

Safaricom’s Kenyan division reported a net profit of KSh 47.5 billion, which represents an increase of 14.1%.

Safaricom CEO Peter Ndegwa said the telco will continue growing its core business while expanding into new services.

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“This performance, which comes at a time when we are marking 24 years of connecting and transforming Kenyans’ lives, reflects the relentless execution of our strategy,” Ndegwa said.

How many jobs did Safaricom create?

In related news, Safaricom released its Sustainable Business Report in October 2024, showing how the telco achieved its key milestones.

The leading telecommunications firm created more than one million jobs for Kenyans during the past year.

The report indicated that Safaricom intends to leverage more on technology and M-Pesa to attain core shared values.

Source: TUKO.co.ke