Safaricom share value depends on Ethiopia (2024)

FAQs

Is buying Safaricom shares a good investment? ›

Safaricom Plc is routinely listed among the most profitable firms in the East and Central Africa area, and for good reason: it is the largest provider of telecommunications services in Kenya.

Our shareholding and company structure in Ethiopia

Vodafamily Ethiopia Holding: 61.9% (Safaricom PLC 55.71%, Vodacom Group 6.19%) Sumitomo Corporation 27.2% CDC Group PLC 10.9%

The current share price of Safaricom Plc (SCOM) is KES 16.00. SCOM closed its last trading day (Friday, April 19, 2024) at 16.00 KES per share on the Nairobi Securities Exchange (NSE), recording a 2.1% drop from its previous closing price of 16.35 KES.

Safaricom spent nearly $400 million (55.6 billion Kenyan shillings) capitalizing the new Ethiopia venture, in the financial year ended March 2023. It plans to spend another $300 million in the current financial year which ends in March 2024. Safaricom Ethiopia did not immediately respond to queries from Semafor Africa.

In the last three years, Safaricom has been paying shareholders dividends worth between Ksh48 billion and 55 billion on average. In the previous year, 2023, each received a dividend per share of Ksh1. 20/share.

Future Growth

Safaricom's earnings are forecast to decline at 6.4% per annum while its annual revenue is expected to grow at 9.6% per year. EPS is expected to grow by 12% per annum. Return on equity is forecast to be 35.5% in 3 years.

Our shareholding structure changed during the year and is currently comprised of the Government of Kenya (35 per cent), Vodacom (35 per cent), Vodafone (5 per cent) and free float (25 per cent). * Company holds an indirect interest in Safaricom through a wholly-owned subsidiary, Vodafone Kenya Ltd (VKL).

We are a purpose-led technology and communication company committed to contributing to Ethiopia's digital transformation and inclusion objectives.

The company valuation of Safaricom PLC according to these metrics is way below the market valuation of its peer group. The P/Earnings NTM ratio of Safaricom PLC is significantly lower than the average of its sector (Mobile Telecommunications): 13.75.

How many Safaricom shares can I buy? ›

A member can buy as many shares as they can afford as long as they are available on the market. 5. Can a member offload their shares to another existing member? Yes this arrangement is allowed.

Safaricom Ethiopia makes $43,368 in M-PESA revenue three months after launch. Safaricom Ethiopia has made KES 7.2 million ($43,368) in M-PESA revenue three months after it launched in August 2023.

Wim Vanhelleputte is the CEO of Safaricom Telecommunications Ethiopia PLC, a purpose-led technology and communication company committed to contributing to Ethiopia's digital transformation and inclusion objectives.

In 2023 Ethiopia has reached an estimated GDP scale of 156.1 billion dollars nominal, for PPP the country's economy has reached an estimated 393.85 billion dollars. This mostly comes from a services-based economy with agriculture.

Safaricom has announced a Sh0. 55 interim dividend per share amounting to Sh23. 03 billion, marking the second consecutive year the telco is cutting the payout to investors. The telco said Thursday the board had approved the payout related to the financial year ending March 2024 in a meeting held a day earlier.

Safaricom of the future will be a technology company and will offer more in the education, agriculture, and health sectors as it grows. The next phase of Safaricom's growth will see the service provider continue its innovation tradition and simplify its products and services in line with its FOR YOU brand promise.