Latest news with #PeterNdegwa
Yahoo
12-05-2025
- Business
- Yahoo
Safaricom PLC (NAI:SCOM) Full Year 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...
Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Safaricom PLC (NAI:SCOM) achieved double-digit growth in both revenue and net income, with group revenue increasing by 12.9% and net income climbing by 14.2%. The company successfully expanded its operations in Ethiopia, now serving 9 million customers and contributing close to 10% of group revenue. M-PESA continues to drive financial inclusion, with a 15.2% growth in revenue and a significant increase in merchant payments. Safaricom PLC (NAI:SCOM) maintained a strong customer base, with a 7.1% increase in active customers, reaching 37.1 million. The company has been recognized as a top employer in Ethiopia, Kenya, and across Africa, reflecting its commitment to world-class workplace standards. The company faces pressure on disposable income and competition in Kenya, demanding active focus on delivering value-driven customer propositions. Regulatory and industry dynamics in both Kenya and Ethiopia present challenges that require strategic navigation. The Ethiopia business, while growing, still incurs significant losses, with an EBIT loss projected between 23 and 26 billion shillings for FY26. Currency reforms and hyperinflationary accounting in Ethiopia have impacted the group's financial results. Despite strong performance, the company continues to face reputational brand erosion and increased regulatory scrutiny in both markets. Warning! GuruFocus has detected 11 Warning Signs with NAI:SCOM. Q: What regulatory changes do you expect in Ethiopia, and how will they impact Safaricom's operations? A: Wim Van Halepo, CEO of Safaricom Ethiopia, explained that the Ethiopian Communication Authority has initiated a glide path for the Mobile Termination Rate (MTR) and declared Safaricom as a Significant Market Power (SMP). The implementation of concrete measures related to the SMP declaration is still in progress, and further regulatory changes are expected over the coming months or years. Q: Given that Safaricom is past its peak investment phase in Ethiopia, should we expect a higher dividend payout in the future? A: Dr. Peter Ndegwa, Group CEO, stated that Safaricom does not guide on dividends but maintains a policy of paying approximately 80% of distributable profits as dividends. The investment in Ethiopia is within the medium-term guidance, and the company is on track to become EBIT positive in Ethiopia by FY27. Q: What is driving the momentum in Safaricom's connectivity business, and how is it achieving record growth? A: Dilip Pal, Group CFO, attributed the growth to customer propositions, affordable pricing, and personalized offers enabled by big data and AI. The company has also seen significant growth in 4G device adoption and customer engagement through targeted offerings. Q: How soon can Ethiopia expect to have the same M-PESA offerings as Kenya? A: Wim Van Halepo, CEO of Safaricom Ethiopia, mentioned that they are launching the Ethiopian version of Fuliza (overdraft service) soon and plan to introduce term loans and savings products. The focus is on adapting successful Kenyan use cases to the Ethiopian market. Q: Is Safaricom planning to expand to other larger economies such as Nigeria? A: Dr. Peter Ndegwa, Group CEO, indicated that while there is potential for expansion, the current focus is on ensuring the success of the Ethiopian operations. Safaricom is also investing heavily in its existing markets, including Kenya, in areas like enterprise, public sector, and financial services. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Safaricom PLC (NAI:SCOM) Full Year 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...
Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Safaricom PLC (NAI:SCOM) achieved double-digit growth in both revenue and net income, with group revenue increasing by 12.9% and net income climbing by 14.2%. The company successfully expanded its operations in Ethiopia, now serving 9 million customers and contributing close to 10% of group revenue. M-PESA continues to drive financial inclusion, with a 15.2% growth in revenue and a significant increase in merchant payments. Safaricom PLC (NAI:SCOM) maintained a strong customer base, with a 7.1% increase in active customers, reaching 37.1 million. The company has been recognized as a top employer in Ethiopia, Kenya, and across Africa, reflecting its commitment to world-class workplace standards. The company faces pressure on disposable income and competition in Kenya, demanding active focus on delivering value-driven customer propositions. Regulatory and industry dynamics in both Kenya and Ethiopia present challenges that require strategic navigation. The Ethiopia business, while growing, still incurs significant losses, with an EBIT loss projected between 23 and 26 billion shillings for FY26. Currency reforms and hyperinflationary accounting in Ethiopia have impacted the group's financial results. Despite strong performance, the company continues to face reputational brand erosion and increased regulatory scrutiny in both markets. Warning! GuruFocus has detected 11 Warning Signs with NAI:SCOM. Q: What regulatory changes do you expect in Ethiopia, and how will they impact Safaricom's operations? A: Wim Van Halepo, CEO of Safaricom Ethiopia, explained that the Ethiopian Communication Authority has initiated a glide path for the Mobile Termination Rate (MTR) and declared Safaricom as a Significant Market Power (SMP). The implementation of concrete measures related to the SMP declaration is still in progress, and further regulatory changes are expected over the coming months or years. Q: Given that Safaricom is past its peak investment phase in Ethiopia, should we expect a higher dividend payout in the future? A: Dr. Peter Ndegwa, Group CEO, stated that Safaricom does not guide on dividends but maintains a policy of paying approximately 80% of distributable profits as dividends. The investment in Ethiopia is within the medium-term guidance, and the company is on track to become EBIT positive in Ethiopia by FY27. Q: What is driving the momentum in Safaricom's connectivity business, and how is it achieving record growth? A: Dilip Pal, Group CFO, attributed the growth to customer propositions, affordable pricing, and personalized offers enabled by big data and AI. The company has also seen significant growth in 4G device adoption and customer engagement through targeted offerings. Q: How soon can Ethiopia expect to have the same M-PESA offerings as Kenya? A: Wim Van Halepo, CEO of Safaricom Ethiopia, mentioned that they are launching the Ethiopian version of Fuliza (overdraft service) soon and plan to introduce term loans and savings products. The focus is on adapting successful Kenyan use cases to the Ethiopian market. Q: Is Safaricom planning to expand to other larger economies such as Nigeria? A: Dr. Peter Ndegwa, Group CEO, indicated that while there is potential for expansion, the current focus is on ensuring the success of the Ethiopian operations. Safaricom is also investing heavily in its existing markets, including Kenya, in areas like enterprise, public sector, and financial services. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TimesLIVE
09-05-2025
- Business
- TimesLIVE
Safaricom sees earnings surge as Ethiopia startup losses fall
Kenyan telecoms firm Safaricom said on Friday that its earnings could surge as much as 50% this financial year as it projected that losses in key expansion market Ethiopia would fall steeply. Safaricom, partly owned by South Africa's Vodacom and Britain's Vodafone, launched in Ethiopia in 2022 as the government there opened up the tightly-controlled economy to foreign competition. The company has had a bumpy ride in Ethiopia due to security, inflation and currency challenges, but it remains bullish that Africa's second most-populous nation will power future growth. CEO Peter Ndegwa told a results presentation that the company was expecting group earnings before interest and taxes of 144-billion to 150-billion Kenyan shillings (R20.26bn to R21.10bn) in the year to the end of March 2026, excluding the hyper-inflationary impact from its Ethiopian business. That compares with EBIT of 97.1-billion shillings (R13.66bn) in the year to end-March 2025 without the hyper-inflationary impact.
Time of India
09-05-2025
- Business
- Time of India
Safaricom sees earnings surge as Ethiopia startup losses fall
By Hereward Holland NAIROBI: Kenyan telecoms firm Safaricom said on Friday that its earnings could surge as much as 50% this financial year as it projected that losses in key expansion market Ethiopia would fall steeply. Safaricom, partly owned by South Africa's Vodacom and Britain's Vodafone, launched in Ethiopia in 2022 as the government there opened up the tightly-controlled economy to foreign competition. The company has had a bumpy ride in Ethiopia due to security, inflation and currency challenges, but it remains bullish that Africa's second most-populous nation will power future growth. Chief Executive Officer Peter Ndegwa told a results presentation that the company was expecting group earnings before interest and taxes of 144 billion to 150 billion Kenyan shillings ($1.12 billion-$1.16 billion) in the year to the end of March 2026, excluding the hyper-inflationary impact from its Ethiopian business. That compares with EBIT of 97.1 billion shillings in the year to end-March 2025 without the hyper-inflationary impact. "We are pleased with our performance in FY25 despite the various challenges that faced the operating environment including economic disruptions, slowdown in GDP growth and impact of foreign exchange regime reforms in Ethiopia," Safaricom said in a statement. Group service revenue grew more than 10% year-on-year to 371.4 billion shillings last financial year, while customer numbers increased 16% to 57.1 million. Safaricom's Kenya business continued to be the main profit driver last year, while the company invested in rolling out operations in Ethiopia. This year, the company expects negative EBIT of between 23 billion and 26 billion shillings in Ethiopia, compared to negative EBIT of about 61 billion last year. "The exceptional performance in our Kenya business... offset the foreign exchange corrections in Ethiopia," Ndegwa said. Safaricom's board has proposed a final dividend of 0.65 shillings per ordinary share, making the total dividend for 2024-2025 similar to the previous year.
Zawya
09-05-2025
- Business
- Zawya
Kenya: Safaricom sees earnings surge as Ethiopia startup losses fall
NAIROBI - Kenyan telecoms firm Safaricom said on Friday that its earnings could surge as much as 50% this financial year as it projected that losses in key expansion market Ethiopia would fall steeply. Safaricom, partly owned by South Africa's Vodacom and Britain's Vodafone, launched in Ethiopia in 2022 as the government there opened up the tightly-controlled economy to foreign competition. The company has had a bumpy ride in Ethiopia due to security, inflation and currency challenges, but it remains bullish that Africa's second most-populous nation will power future growth. Chief Executive Officer Peter Ndegwa told a results presentation that the company was expecting group earnings before interest and taxes of 144 billion to 150 billion Kenyan shillings ($1.12 billion-$1.16 billion) in the year to the end of March 2026, excluding the hyper-inflationary impact from its Ethiopian business. That compares with EBIT of 97.1 billion shillings in the year to end-March 2025 without the hyper-inflationary impact. "We are pleased with our performance in FY25 despite the various challenges that faced the operating environment including economic disruptions, slowdown in GDP growth and impact of foreign exchange regime reforms in Ethiopia," Safaricom said in a statement. Group service revenue grew more than 10% year-on-year to 371.4 billion shillings last financial year, while customer numbers increased 16% to 57.1 million. Safaricom's Kenya business continued to be the main profit driver last year, while the company invested in rolling out operations in Ethiopia. This year, the company expects negative EBIT of between 23 billion and 26 billion shillings in Ethiopia, compared to negative EBIT of about 61 billion last year. "The exceptional performance in our Kenya business... offset the foreign exchange corrections in Ethiopia," Ndegwa said. Safaricom's board has proposed a final dividend of 0.65 shillings per ordinary share, making the total dividend for 2024-2025 similar to the previous year. ($1 = 129.0000 Kenyan shillings)
