Ethiopia investment weighs down Safaricom with 18pc profit drop
Safaricom PLC CEO Peter Ndegwa during the release of the telco's half-year results in Nairobi on November 11, 2022. The company's net profit in the first half of the financial year ended September has declined to $248 million, mainly due to its massive capital expenditure in starting up the Ethiopian subsidiary. PHOTO | DIANA NGILA | NMG
Business and Technology Reporter in Nairobi, Kenya
Nation Media Group
Safaricom’s net profit in the first half of the financial year ended September has declined to $248 million, mainly due to its massive capital expenditure in starting up the Ethiopian subsidiary that kicked off operations last month.
The telecommunication firm’s revenue in the year started April rose by 4.6 percent year on year to $1.2 billion, but the start-up losses from the Ethiopia operations and other macroeconomic shocks weighed down the net income to $275 million, a 10 percent decline from the previous half-year results.
