Safaricom Pays Over KSh 48b Dividends Despite Drop In Profit To KSh 42b

• Safaricom Group reported a drop in net profit for the financial year ending March 2024 to KSh 42.66 billion
• This was an 18.7% decline from KSh 52.48 billion reported during a similar period in the previous financial year
• However, the company paid dividends of KSh 1.2 per share on dividends amounting to KSh 48.08 billion

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Safaricom PLC shareholders have bagged over KSh 48 billion in dividend payout for the year ending March 2024.

The company maintained a KSh 1.2 dividend payout per share despite a drop in its group net profit.

Safaricom board recommended a final dividend payout of KSh 0.65 per share, amounting to KSh 26.04 billion, plus KSh 0.55 (KSh 22.04) interim dividend paid in March 2024, bringing the total to KSh 48.08 billion.

How much dividend did Safaricom pay per share?

The telco's profit dropped by 18.7% to KSh 42.66 billion for the full-year ended March, down from KSh 52.48 billion during a similar period last year.

Safaricom chairman Adil Khawaja attributed the drop to losses incurred from Ethiopia's operations.

"We are paying a similar dividend to last year’s despite registering the highest EBITDA loss from Ethiopia this year. This reiterates that our Kenya performance was exceptional and offset the startup losses from Ethiopia," said Khawaja.

The company's final dividend payout will be on August 31, 2024, after the close of business on July 31, 2024.

What are Safaricom's earnings in 2023/24?

The group service revenue crossed the KSh 300 billion mark to close at KSh 335.4 billion, up 13.4%.

Net income closed at KSh 63 billion, up marginally 1.2% year-on-year.

Safaricom Kenya's full-year profit rose to KSh 82.65 billion, up from KSh 74.9 billion in March 2023.

Safaricom CEO Peter Ndegwa announced that Safaricom had become the first company in the region to join the league of billion-dollar companies.

We have delivered a strong performance in the penultimate year of our 2025 strategy. Our focus on scaling operations for Ethiopia's digital future has been instrumental in driving our growth," Ndegwa stated.

Despite a challenging business environment, Safaricom reported KSh 140 billion in earnings before interest and tax.

Proofreading by Nyambura Guthua, journalist and copy editor at TUKO.co.ke