Ethiopia: Safaricom’s profit falls by a quarter for year-end 2023

We may earn money or products from the companies mentioned in this post. please note that some of the links below are affiliate links, and at no additional cost to you, we will earn a commission when you use one of the links. The company pays us for referral link sharing, which helps us run this blog and give our in-depth content to our readers for free.

Safaricom’s profit has fallen for the third year in a row by 22.2% to Ksh52.48bn for the year ending March 2023, due to large investments into its Ethiopian subsidiary as well as tax hikes, cuts to the mobile termination rate (to encourage interoperability) and foreign exchange challenges on home turf.

Profit for the year ended March 2022 stood at Ksh67.496bn.

According to Safaricom’s annual report, investment into the radio access network (RAN – used for wireless telecommunications systems) in Ethiopia accounted for 58.1% (Ksh32.4bn) of total capex investments into Safaricom Telecommunication Ethiopia (STE) – almost triple the amount spent on similar infrastructure in Kenya.

Network expansion and transmission had a combined expense of 28.2% (Ksh15.7bn). The rest went into financing operations and IT.

But the total investment made in Ethiopia was within budget , given the telecoms

There’s more to this story

Get unlimited access to our exclusive journalism and features today. Our award-winning team of correspondents and editors report from over 54 African countries, from Cape Town to Cairo, from Abidjan to Abuja to Addis Ababa. Africa. Unlocked.

Subscribe Now

cancel anytime

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *