Safaricom Ethiopia posted a 66.1 percent increase in revenue during the first quarter of the 2027 financial year, driven by rapid growth in mobile data usage and a rising customer base as the operator edges closer to its target of achieving EBITDA break-even this financial year.
The company reported total revenue of Sh5.04 billion for the three months ended June 2026, up from the corresponding period last year. Service revenue rose 67.6 percent to Sh4.95 billion.
Safaricom said revenue growth was even stronger when adjusted for currency movements, with service revenue rising 102.2 percent and total revenue increasing 100.3 percent in constant currency, reflecting the impact of the depreciation of the Ethiopian birr on reported earnings.
The operator maintained its target of reaching EBITDA break-even during the 2027 financial year but did not disclose its EBITDA, operating costs or net loss for the quarter.
Mobile data remained the company’s biggest source of revenue, growing 78.6 percent to Sh3.60 billion from Sh2.02 billion a year earlier. Data accounted for 72.8 percent of total service revenue, up from 68.3 percent, underscoring the increasing demand for internet services in Ethiopia.
Voice revenue also increased by 36 percent to Sh846.1 million, although its contribution to service revenue declined to 17.1 percent from 21.1 percent as data services continued to outpace traditional voice calls.
The latest results highlight the rapid expansion of Safaricom Ethiopia since it entered the market. Revenue generated in the first quarter alone represented more than half of the company’s total revenue for the entire 2025 financial year and nearly three-quarters of revenue recorded in 2024.
Customer growth also remained strong during the quarter. Three-month active customers increased by 46.1 percent to 14.7 million, up from 10.06 million a year earlier. One-month active customers rose 50.4 percent to 11.63 million, while three-month active data customers grew 47 percent to 11.52 million.
Average data consumption per chargeable subscriber increased by 15.7 percent to approximately 7.8GB, reflecting increased adoption of digital services. Data average revenue per user (ARPU) rose 39.1 percent in local currency to ETB174.93, indicating stronger customer spending despite currency pressures.
Although reported voice ARPU declined slightly in Kenya shilling terms, it increased by 17.9 percent in Ethiopian birr, suggesting that the decline was mainly due to exchange rate movements rather than weaker customer demand.
Safaricom Ethiopia also continued expanding its network infrastructure, increasing the number of operational sites by 12 percent to 3,592. Customer growth outpaced network expansion, lifting active customers per site to more than 4,000, an indication of improved network utilisation.
The company said ongoing cost optimisation initiatives and improved fuel supply had enhanced network availability and operational efficiency.
Its mobile money platform, M-PESA Ethiopia, also recorded strong growth in customer adoption. One-month active M-PESA customers more than doubled to 2.58 million, while active merchants increased by 147.7 percent to 89,877.
The total value of M-PESA transactions surged by 174.8 percent to Sh16.03 billion, while transaction volumes rose 157.7 percent to 108.7 million during the quarter.
However, despite the rapid growth in usage, M-PESA revenue declined by 15.6 percent to Sh4.3 million, indicating that the service is still in its early monetisation phase.
Safaricom said total funding committed to the Ethiopian business had reached US$2.67 billion, including US$2.31 billion in equity financing. Safaricom PLC’s contribution increased to US$1.23 billion, while deferred vendor payables declined by 57.6 percent to US$72 million, reflecting continued investment in the expansion of the business.
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