Safaricom hits 140B operating profit in first Quarter of 2024

By Catherine Muema On May 9, 2024

Safaricom Chief Executive Officer Peter Ndegwa

By Antynet Ford

Telecommunications service provide Safaricom has recorded a 20 per cent increase in their for the period that ended in March amounting to Sh140 billion.

This makes the gian Telco to be the first company in East Africa to hit past a billion-dollar mark in it’s earnings.

Safaricom Chief Executive Officer Peter Ndegwa said M-Pesa crossed the 40 per cent mark in contributing to the company’s service revenue.

The net earnings for the year ended March 31, 2024 dropped by 23 per cent to Sh42.6 billion compared to Sh52.4 billion for the last FY.

The drop has been attributed to the tough operating environment during the year under review, which was characterised by forex volatilities that saw the shilling drop to lowest levels against major international currencies.

The gross earnings also dropped to Sh84 billion from Sh88 billion the previous year.

The mobile money arm of the listed telco’s total earnings rose to Sh139.9 billion, representing 42 per cent of Safaricom’s total service revenue increasing from 19.36 per cent the previous year.