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Nairobi - Kenya's leading telco, Safaricom, has announced its financial report for the year ending March 2024.
In the report, Safaricom CEO Peter Ndegwa announced that the company had joined the league of billion-dollar companies, disclosing that it was the first company in the region to achieve the feat.
In the results, Ndegwa said the net profit for the year to March for Safaricom Kenya was KSh 82.65b from KSh 74.94b registered in 2023.
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For the Safaricom Group, which includes Safaricom's operations in Ethiopia, the net profit dropped from KSh 52.48b to KSh 42.66b.
"Ethiopia is still within expectation, with their EBITDA expected to breakeven in year 4 of operations which is FY 26.
We expect to have 15-20 million customers, with a network of just over 4,000 sites in the medium term," said Ndegwa.
The operating profit increased by 20.4% to KSh 140b in earnings before interest and tax.
This was the first time in three years Safaricom was registering a rise in profit in three years after the tough business environment occasioned by the COVID-19 pandemic.
To break down the meaning of a billion dollar, we will start by understanding a billion, which is a number that is formed by 1 (one) then, followed by 9 (nine) zeros: 1,000,000,000.
So, in the Kenyan context, a billion dollars is equivalent to about KSh 130.5b, using the current exchange rate of 1 USD = 131.22 KSh.
With Safaricom's earnings before interest and taxes (EBIT) at KSh 140b, then it means the company has crossed the billion dollar mark (KSH 130.5b), representing a significant achievement in the Kenyan market.
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Safaricom CEO Peter Ndegwa speaking.
What Is The Meaning of a Billion Dollar? Safaricom's Earnings Explained
What Is The Meaning of a Billion Dollar? Safaricom's Earnings Explained