Safaricom PLC has reported a net profit of about KSh74 billion after significantly reducing losses from its Ethiopia operations.

The telecommunications giant attributed the improved performance to strong growth in mobile money, data services, and better operational results from its expansion into the Ethiopian market.

Ethiopia Venture Begins Showing Progress

Safaricom’s entry into Ethiopia has been one of the company’s most ambitious regional investments, but the venture initially posted heavy losses due to infrastructure rollout costs, market expansion, and operational expenses.

However, the latest financial results show the losses narrowed considerably during the financial year, signaling improving performance in the new market.

The company has continued to expand network coverage and attract more subscribers in Ethiopia as it positions itself for long-term growth in the region.

M-Pesa and Data Revenue Boost Earnings

Back home in Kenya, Safaricom continued to benefit from strong demand for M-Pesa services, mobile data, and enterprise solutions.

M-Pesa remained a major revenue driver as digital financial transactions continued to rise among individuals and businesses.

Analysts say the reduced losses in Ethiopia are likely to reassure investors who had expressed concern over the high cost of the company’s regional expansion strategy.

Investor Confidence Expected to Rise

The latest results are expected to strengthen investor confidence in Safaricom’s long-term expansion plans across Africa.

Company executives have previously maintained that the Ethiopia business would take time to mature, citing the country’s huge population and untapped telecommunications market as key opportunities.

The improved earnings now suggest Safaricom may be gradually moving closer to stabilising its Ethiopia operations while maintaining strong growth in its core Kenyan market.