Half Year 2026 Safaricom PLC Earnings Call Transcript
Key Points
- Safaricom PLC (NAI:SCOM) achieved a significant milestone by surpassing 50 million customers in Kenya and over 10 million in Ethiopia, marking its Silver Jubilee with strong customer growth.
- The company reported a robust financial performance with service revenue growing by 11.1% to KES200 billion, and net income increasing by 52.1% to KES42.8 billion at the group level.
- M-PESA continues to be a major growth driver, with a 14% increase in revenue year over year, contributing approximately two-thirds of the service revenue growth.
- Safaricom PLC (NAI:SCOM) is leveraging AI to enhance customer service, improve fraud detection, and optimize pricing, which has resulted in a significant reduction in fraud incidents.
- The company is expanding its Fixed Broadband business with strong growth in customer numbers and is introducing pay-as-you-go propositions to increase accessibility.
- The Ethiopian market presents challenges due to currency depreciation and delayed price adjustments, impacting the company's ability to grow sustainably.
- Despite commercial progress, Safaricom Ethiopia faces regulatory and structural challenges that require engagement with stakeholders to address.
- The company experienced a decline in Voice and messaging revenue in Kenya, indicating shifts in customer preferences.
- Operating costs increased by 10.4% year on year, driven by currency depreciation and higher advertising and promotion expenses.
- The impact of no price repair in Ethiopia poses a risk to the group's financial performance and breakeven targets for the Ethiopian operations.
Good morning, ladies and gentlemen, and welcome to the half-year results announcement for Safaricom PLC for the period ended September 30, 2025. On behalf of our Board of Directors, the management team and the staff of Safaricom PLC, we thank you very much for joining us in person and virtually for this event. My name is Caroline Wambugu. I serve as the Head of Financial Planning, Analysis, and Investor Relations here at Safaricom, and I'll be your moderator for the day.
I'm glad that we could meet in person as well as connect virtually and engage this morning. Should you like to keep your social media followers updated, our hashtag today is Safaricom HY results. I'll repeat that, Safaricom HY results and should be appearing on your screen now as we speak. And in staying committed to our promise on diversity and inclusion, our sign language interpreters are [Tobias Amondi and Mary Luisa Wanja].
To kick us off, we will start with our Group Chief Executive Officer, Dr. Peter Ndegwa, who will give a
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