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TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
M-Pesa is the main revenue contributor to Safaricom PLC, accounting for 42.2% of the company's total revenue.
According to the financial statements for the year ending March 31, 2024, Safaricom Group posted a 13.4% growth in service revenue to KSh 335.35 billion.
The company attributed this to M-Pesa, Mobile data and fixed revenues, from other services.
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"Overall Group customers grew 6.8% year-on-year to 49.02 million while one-month active customers grew by 9.1% year on year to 37.7 million," said Dilip Pal, Safaricom PLC CFO.
Pal noted that the overall market share for Safaricom Kenya stood at 65.9% as of December 2023.
Group Net Income attributable to owners of the Company grew 1.2% to KSh 62.99 billion, while Kenya's wing net income increased 13.7% to KSh 84.74 billion.
Below is a list of services that contributed to Safaricom's revenue growth:
Safaricom messaging services revenue grew by 8% to KSh 12.28 billion. This was supported by 8 % growth in Average Revenue Per Unit (ARPU) to KSh 47.33.
However, the telco reported a drop in voice services income of 1.7% to KSh 79.51 billion.
"This reflects the global impact of the downward trend of voice service. We continue to offer better integrated and segmented propositions through our Customer Value Management (CVM) initiatives to drive affordability and usage," he said.
In the same period, rate per minute declined 12.7% to KSh 1.25 while minutes of use per subscriber rose 15.9% to 189.41 minutes.
Safaricom voice and messaging revenue now stands at 28.1% of service revenue.
M-Pesa revenue increased to KSh 139.91 billion, representing a 19.4% growth driven by increased usage.
Chargeable transactions by active customers (32.41 million) per month grew by 33.9% to 31.51 million, while ARPU rose by 16.1% to KSh 361.32.
Total M-Pesa transaction value rose 9.6% to KSh 40.24 trillion while volumes grew 33.9% to KSh 28.33 billion.
Lipa Na M-Pesa active merchants grew 4.3% to 633,010, while Pochi la Biashara tills stood at 632,681.
M-Pesa accounted for 42.2% of the company's service revenue, further complementing traditional voice and messaging services.
Safaricom mobile data revenue recorded double-digit growth of 18% to KSh 63.24 billion. ARPU grew marginally by 1.5% to KSh 242.71.
Data usage per chargeable subscriber increased by 6.4% to 3.79GB, while distinct bundle users grew by 13.8% to 19.69 million.
However, the average rate per MB declined further by 4.6% to 6.40 cents during the period.
Smartphone users on the Safaricom network grew by 12.9% to 22.93 million, while 4G devices grew by 27.5% to 16.85 million.
Out of this number, 49.7% used more than 1GB, while 5G devices rose by 79.3% to 669,710.
Mobile data accounted for 19.2% of service revenue during the period under review.
Fixed service and wholesale transit revenue grew by 12.0% to KSh 15.11 billion.
This was supported by growth in consumer revenue, which increased by 31.1% to KSh 6.48 billion.
A 0.9% growth in enterprise revenue to KSh 8.63 billion also contributed to the service revenue.
"Our fixed data market share stood at 36.7% as of December 2023, as per the Communications Authority of Kenya (CA)," the CFO added.
Fibre to the home (FTTH) and fixed enterprise contributed 4.6% of the Safaricom PLC service revenue.
FTTthe H customers grew 27% to 248,570, while its subscription increased to 66.4%, with homes connected growing 34.9% to 371,990, while homes passed increased by 20.3% YoY to 560,260.
Fixed Enterprise customers reported a 13.1% growth to 59,460 during the same period under review.
Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.
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M-Pesa accounted for 42.2% of the company's total revenue.
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