Safaricom FY25 Results: M-PESA and Mobile Data Lead the Charge in Kenya and Beyond

Safaricom PLC declared resilient Safaricom FY25 results, showcasing stellar growth despite macroeconomic issues in East Africa. Revenue was up by 11.2% to KShs 388.7 billion, fuelled by continued M-PESA dominance, mobile data growth, and Safaricom’s further strategic investments in Ethiopia.

As Safaricom ends the five-year plan for its next phase of growth, Safaricom’s FY25 results stand as an important marker in its Vision 2030. It reflects the capability of Safaricom in facing economic disturbances and positioning itself at the forefront of growth back home and internationally.

“The Safaricom FY25 results demonstrate strong execution in a challenging macroeconomic environment where innovation and customer-first strategies have created tangible value,” stated the CEO of Safaricom, Dr. Peter Ndegwa. “M-PESA, mobile data, and our investments in Ethiopia provide the base for growth into the future.”

Key Financial Highlights for FY25: Growth and Resilience

The company posted impressive growth in Safaricom’s FY25 key financial metrics:

• Group Service Revenue: Up 10.8% YoY to KShs 371.4 Bn.
• EBITDA: Grew 5.4% YoY to KShs 172.15 Bn, with a comfortable margin of 44.3%.
• Net Income: Up 10.8% YoY to KShs 69.8 Bn (excluding minority interests).
• Free Cash Flow (Kenya): Improved to KShs 89.94 Bn from KShs 76.13 Bn in FY24.
• Dividend: Safaricom maintained the final dividend at KShs 0.65 per share, amounting to KShs 26.04 Bn, which was similar to that of FY24.

These Safaricom FY25 results show the company realizing great returns despite some external headwinds, including inflation and foreign exchange fluctuations.

M-PESA and Mobile Data Drive Kenya’s Growth

M-PESA service revenue hiked by 15.2% YoY to KShs 161.1 billion, and it currently accounts for 44.2% of the total Kenyan service revenue. On the other hand, mobile data revenues also rose by 15.2% YoY to KShs 72.86 billion. Voice revenues, however, grew marginally by 1.6% YoY to KShs 80.78 billion, while fixed line and wholesale revenue also increased by 12.9% YoY to KShs 17.07 billion. Mobile subscribers grew 8.0% YoY to 48.24 million as smartphone penetration experienced a substantial growth of 32.4% in 4G devices and 57% in 5G devices YoY.

M-PESA, by the FY25 Safaricom results, was the spotlight in terms of revenue generation, with mobile data usage recording a significant increase. With smartphone uptake being on the rise, Safaricom continues to be the dominant force in Kenya’s telecom sector.

Ethiopia: Strategic Patience and Growth Potential

In Ethiopia, the operations of Safaricom have found a promising trajectory at the very infant stages. The Safaricom FY25 results in Ethiopia report major progress made:

• Adjusted Service Revenue: KShs 7.55 Bn, up 35.3% YoY.
• Mobile Data Revenue: Up 35.8% YoY to KShs 5.66 Bn.
• Voice Revenue: Up 14.1% YoY to KShs 1.17 Bn.
• M-PESA Revenue: Still very early days with revenue at KShs 12.5Mn, yet transaction values crossed KShs 20.65Bn.
• Active Customers: Increased by an astounding magnitude of over 100% YoY to 8.84 million active users.

The Safaricom FY25 results in Ethiopia show the promising beginnings. However, inflation and currency devaluation remain macroeconomic challenges. Safaricom’s investments in infrastructure and customer acquisition are, nonetheless, a shot for growth over the longer term.

Risks and Challenges: Navigating Economic Uncertainty

Despite solid 2025 Safaricom results, the company faced various challenges:

• Macroeconomic Pressure: The high interest rates and ever-increasing price pressure on Kenya and Ethiopia.
• Ethiopia FX Regime Reform: While the long-term reform looked promising, short-term financial strain had to be borne which led to an EBIT loss in Ethiopia.
• Hyperinflation in Ethiopia: The depreciation of the Ethiopian Birr continues to eat substantially into profit margins.

Safaricom FY25 results would suggest that the telco is managing these risks strategically through diversification as well as in the direction of digital services and infrastructure investments.

FY26 Outlook: Building on Strategic Foundations

Considering FY26, Safaricom is confident about the sustenance of its growth, as held in the Safaricom FY25 results:

• Group EBIT: Between 144 and 150 billion shillings.
• Capex: Expected to lie between 72 and 78 billion shillings.
• Kenya EBIT: From 170 to 173 billion shillings.
• Ethiopia EBIT Loss: Will continue to lessen, going from 23 to 26 billion shillings.

The forecast of the Safaricom FY25 results suggested that in FY26 and beyond, growth will be driven by protecting the investment in the digital ecosystem, mainly through M-PESA in Ethiopia and further network development towards 6,000+ sites by 2030.

Strategic Takeaways: Positioning for a Pan-African Future

The Safaricom FY25 results further cement the company’s leadership in the telecom industry in Kenya, enjoying 65.2% market share. Its Vision 2030 towards becoming a pan-African digital services provider has since been set into motion with investments in mobile financial services and network infrastructure.

While Ethiopia is a long-term bet, the Safaricom FY25 results indicate healthy initial growth of the market, with future profit on the company depending on further investments in the region.

A Legacy of Innovation and Impact

On the 25th anniversary of Safaricom, the FY25 results underscore its transformative force in the region, pushing financial inclusion and digital access. The East African economy greatly benefited from the presence of this company, where M-PESA alone managed to raise Kenya’s financial inclusion levels from 19% in 2006 to 84.8% in 2024.

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