Kenyan telecoms company Safaricom reported a 55% rise in its half-year profit on Thursday, helped by a smaller loss in key expansion market Ethiopia.
Safaricom posted a group operating profit of 65.2-billion Kenyan shillings (R8.81bn) in the six months to the end of September and maintained its full-year guidance.
Steady growth in its Kenya business continued to be the main profit driver, while its reported loss in Ethiopia dropped by 59% compared to the first half of the previous financial year, which was heavily affected by a depreciation of the Ethiopian birr currency.
Safaricom launched in Ethiopia in 2022 as the government there opened up the tightly controlled economy to foreign competition and is hoping its presence in Africa’s second most populous country will power future growth.
The telecoms firm is partly owned by Vodacom and Britain’s Vodafone. Group service revenue rose to 199.9-billion shillings in the six months to end-September, from 179.9-billion shillings in the same period a year earlier, it said on Thursday.
Revenue from mobile financial service M-Pesa rose to 88.1-billion shillings from 77.2-billion shillings previously.
Reuters
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