Safaricom maintained a dividend of Sh1.20 per share at Sh48.08 billion after net profit grew by 1.2 percent to Sh62.99 billion.
The telecom company announced on Thursday that its board of directors has recommended a final dividend of Sh0.65 per share amounting to Sh26.04 billion to be in addition to the interim dividend of Sh0.55 per share totaling Sh22.04 billion announced in February.
Safaricom's net profit rose from Sh62.27 billion in the review period driven by increased revenue. This represents a reversal from the previous year when profits fell 10.6 percent.
The Sh48.08 billion dividend is the same as the previous financial year when the telco paid an interim dividend of Sh0.58 per share followed by a final payment of Sh0.62 per share.
The final dividend will be paid on or around August 31, 2024 to shareholders registered on the register of members as of the close of business on July 31, 2024, Safaricom said.
Safaricom Kenya's net profit grew by 13.7 percent to Sh84.74 billion while Safaricom Ethiopia recorded a net loss of Sh42.09 billion, of which Safaricom Plc's stake stands at Sh21.76 billion, given that it owns about 51 percent stake in the Ethiopian business.
“We had a fantastic year in Kenya. We also beat our group guidance, which was revised group-wide guidance. We are also encouraged by the commercial progress we have made in Ethiopia. Our Kenyan operations are now at $1 billion,” said Peter Ndegwa, CEO of Safaricom. American with operating profits of up to Sh140 billion.
“Net income, excluding minority interests, registered a growth of 1.2 percent. “We expect from FY2025, Ethiopia will start being a significant contributor to top-line growth and an accelerator of the bottom line,” he added.
Total revenues grew 12.4 percent to Sh349.45 billion mainly driven by M-Pesa and data businesses. M-Pesa revenue grew 19.5 percent to Sh140 billion while data revenue rose 25 percent to 67.4 percent.
Voice revenue fell 0.6 percent to Sh80.5 billion while messaging revenue rose 8.3 percent to Sh12.3 billion.
The review period saw direct costs rise by 5.2 per cent to Sh97 billion while other operating expenses rose by 12.4 per cent to Sh83.3 billion.
Dilip Pal, Safaricom's CFO, said operations in Ethiopia point to break-even by 2025 and start contributing to profitability.
“We believe the worst is behind us financially for the group. When you look at the group’s numbers, you have to look at Kenya and Ethiopia separately because Ethiopia is in an investment phase and with such significant investments in new areas in the last two years, it is expected that You suffer losses at first.
