Safaricom Projects 50% Profit Surge Driven by Ethiopian Market Turnaround
Telecom giant Safaricom announced on May 9 a projected 50% surge in full-year EBIT to KSh 144-150 billion ($1.1-1.2b), up from KSh 97.1b, largely due to sharply reduced losses in its Ethiopian operations. CEO Peter Ndegwa also reported a 10% rise in group revenue.
Telecommunications behemoth Safaricom PLC delivered an optimistic outlook to investors on May 9, forecasting a potential surge in its full-year earnings before interest and tax (EBIT) to between KSh 144 billion and KSh 150 billion (approximately $1.1–$1.2 billion). This represents a remarkable increase of nearly 50% from the KSh 97.1 billion reported in the prior fiscal year. The primary catalyst for this bullish projection is the significantly reduced operational losses from its relatively new venture in Ethiopia, which is now showing strong signs of a turnaround.
During an investor briefing, Safaricom CEO Peter Ndegwa provided further positive indicators, revealing that the group's overall revenue had already climbed by an impressive 10% to reach KSh 371.4 billion. Subscriber numbers also saw healthy growth, increasing to 57.1 million across its operations. This robust performance, particularly the improved outlook for Safaricom Ethiopia, has generated considerable excitement in the market. The strong guidance positively impacted Safaricom's share price on the Nairobi Securities Exchange and contributed to a broader sense of optimism and buoyant market sentiment among investors in Nairobi, reaffirming Safaricom's position as a blue-chip anchor stock.