What Is The Meaning Of A Billion Dollar? Safaricom's Earnings Explained

• Safaricom CEO Peter Ndegwa announced that Safaricom had become the first company in the region to join the league of billion-dollar companies
• Despite a challenging business environment, Safaricom reported KSh 140 billion in earnings before interest and tax
• For the Safaricom Group, including operations in Ethiopia, the net profit saw a decrease to KSh 42.66 billion

Nairobi - Kenya's leading telco, Safaricom, has announced its financial report for the year ending March 2024.

In the report, Safaricom CEO Peter Ndegwa announced that the company had joined the league of billion-dollar companies, disclosing that it was the first company in the region to achieve the feat.

Safaricom Kenya and Safaricom Ethiopia earnings

In the results, Ndegwa said the net profit for the year to March for Safaricom Kenya was KSh 82.65b from KSh 74.94b registered in 2023.

For the Safaricom Group, which includes Safaricom's operations in Ethiopia, the net profit dropped from KSh 52.48b to KSh 42.66b.

"Ethiopia is still within expectation, with their EBITDA expected to breakeven in year 4 of operations which is FY 26.

We expect to have 15-20 million customers, with a network of just over 4,000 sites in the medium term," said Ndegwa.

The operating profit increased by 20.4% to KSh 140b in earnings before interest and tax.

This was the first time in three years Safaricom was registering a rise in profit in three years after the tough business environment occasioned by the COVID-19 pandemic.

What is a billion dollar?

To break down the meaning of a billion dollar, we will start by understanding a billion, which is a number that is formed by 1 (one) then, followed by 9 (nine) zeros: 1,000,000,000.

So, in the Kenyan context, a billion dollars is equivalent to about KSh 130.5b, using the current exchange rate of 1 USD = 131.22 KSh.

With Safaricom's earnings before interest and taxes (EBIT) at KSh 140b, then it means the company has crossed the billion dollar mark (KSH 130.5b), representing a significant achievement in the Kenyan market.

Key Highlights – Safaricom Group (including Ethiopia)

• Service Revenue 5.2% to KSh 295.7b.
• Voice revenue -2.6% to KSh 81.1 Bn
• M-PESA revenue 8.8% to KSh 117.2 Bn.
• Mobile data revenue +11.4% to KSh 54.0 Bn.
• Total customer base 8.1% to 45.9 million.
• One-month active M-PESA customers 5.2% to 32.1 million.
• One-month active mobile data customers 7.0% to 26.1 million.