Half a Million Safaricom 5G Users Highlight Growing Adoption and Future Potential
Safaricom’s 5G network now serves over 500,000 users, representing impressive 123.5% year-over-year growth. This indicates the expanding accessibility and capabilities of Safaricom’s 5G infrastructure to support the latest mobile technologies.
The rapid uptake of 5G-enabled devices and services underscores the readiness of Safaricom’s customer base to adopt next-generation networks. It also showcases the increasing coverage and reliability of Safaricom’s 5G offerings across Kenya.
As 5G networks provide higher speeds, lower latency, and greater bandwidth compared to 4G or 3G, customers are now able to enjoy immersive content and experiences. From high-definition video streaming to multiplayer cloud gaming, 5G unlocks new possibilities for consumers and businesses alike.
The number of smartphones on Safaricom’s network also grew by 11.4% to 21.37 million. Consumers are migrating to more advanced devices equipped with features like high-resolution cameras and edge AI capabilities, which can be fully utilized through 5G connectivity.
Furthermore, over half of the 4G devices, which increased 18.8% year-over-year, are now consuming over 1GB of data monthly. This indicates that customers are actively using data-heavy services on Safaricom’s 4G networks, foreshadowing strong potential demand for 5G plans as adoption increases.
These metrics showcase growing consumer demand for richer, more immersive digital experiences that 5G networks provide. As a result, mobile data revenue contributes 18.8% of Safaricom’s service revenue. The company will likely continue strategic investments in 5G deployment to meet customer needs and boost revenues.
Rapid Customer Growth in Ethiopia Highlights Expansion Potential
Since launching operations in Ethiopia, Safaricom has acquired 7 million customers, with 4.1 million active over the past three months. This showcases remarkable growth and retention in Ethiopia’s emerging telecom market.
Safaricom’s strong customer uptake in Ethiopia demonstrates its brand appeal and ability to tap into underserved markets eagerly seeking modern digital services. The company is strategically positioned as an early mover in the market, giving it an advantage as Ethiopia’s telecom landscape evolves.
According to the half-year results ending September 2023, Safaricom Ethiopia generated KShs 1.98 billion in service revenue. Mobile data contributed the most at KShs 1.36 billion, indicating strong demand for data services. This is aligned with global trends, where mobile data is driving revenue growth given changing consumer habits.
Voice services earned KShs 424 million, showing that traditional offerings still hold value, especially for Ethiopian consumers getting first-time access to mobile networks.
Furthermore, M-Pesa brought in KShs 7.2 million despite launching in Ethiopia recently. This highlights the potential of mobile money services in the market, which can drive long-term revenue growth.
While direct and operating costs amounted to KShs 3.16 billion, Safaricom remains committed to long-term growth in Ethiopia. The market’s potential and early results validate the company’s regional expansion strategy. Safaricom will likely continue investing to establish itself as a dominant player in Ethiopia.
M-Pesa Revenue Growth Demonstrates Strength of Mobile Money Offerings
M-Pesa revenue grew 16.5% year-over-year to KShs 66.2 billion, representing 42.1% of Safaricom’s service revenue. Total transaction value rose slightly to KShs 18.28 trillion, while transaction volumes increased substantially by 34.7%.
This growth showcases the integral role that M-Pesa continues to play in facilitating payments, transfers, lending, and everyday transactions for consumers and businesses across Kenya.
By providing a fast, convenient, and secure platform for financial services, M-Pesa has become engrained into the lifestyles of millions of Kenyans. Its growth trajectory remains strong despite current economic challenges.
Lending services like M-Shwari and Fuliza contributed significantly as well, at KShs 4.9 billion and KShs 3.9 billion respectively. By enabling access to quick, short-term credit lines, these services fulfill important consumer financing needs.
International remittances through M-Pesa Global grew 24% in value and 11.8% in volume. Remittances are a vital source of income for many Kenyans, and M-Pesa facilitates transfers from abroad efficiently.
The popular M-Pesa Super App has 1.6 million active customers who transacted KShs 897 billion in value. By providing an all-in-one platform for payments, savings, lending and more, the Super App demonstrates the success of Safaricom’s focus on enhancing digital financial services.
Overall, M-Pesa’s growth will likely continue as more customers adopt mobile banking and payments. And Safaricom can leverage the platform to launch more innovative products that solve everyday financial challenges.
Outlook: Innovation and Regional Expansion to Sustain Growth
In conclusion, Safaricom has delivered resilient half-year results despite economic pressures. 5G adoption, smartphone usage growth, and mobile data demand provide future revenue streams. M-Pesa’s offerings also continue to drive performance through lending, payments, and remittances.
Initial successes in Ethiopia validate Safaricom’s regional expansion strategy. Tapping into underserved markets can spur customer growth while diversifying revenue sources. Going forward, the company plans to solve customer needs through digital and financial inclusion initiatives across East Africa.
By leveraging innovation and new growth avenues, Safaricom seems poised to maintain its market leadership amid a rapidly evolving telecom landscape. Investments in infrastructure, strategic partnerships, and customer-centric solutions will help drive revenues while expanding Safaricom’s regional footprint.
