For the fiscal year that ended in March 2023, Safaricom PLC reported a decrease in profit after tax of 22.2%.
This has been attributed to Ethiopia’s high investment costs and inflationary pressures on consumers’ spending.
Nevertheless, M-Pesa and data revenue saw significant growth, which supported the revenue rise.
M-Pesa now accounts for 39.7% of Safaricom’s income, and mobile data makes up 18.2%.
The telco reported a net earning of Sh62.3bn billion during the year under review compared to Sh67.49 billion in the same period last year.
The firm’s service revenue closed the year at Sh297.2 billion (adjusted for mobile termination rates impact), 5.72% up year-on-year. Without adjustment, it is Sh295.2 billion.
This is the firm’s third straight drop in a row after it posted a 6.8 per cent profit retreat in 2021 to Sh68.67 billion, which was the first in nine years.
