Safaricom reported a net profit attributable to shareholders of 58.2 billion Kenyan shillings (approximately $448 million) for the first half of its financial year ended September 2026, up 35.9% from a year earlier. Strong performance in Kenya and a sharp reduction in losses at its Ethiopian subsidiary supported the increase.

Group service revenue rose 13.1% to 226.1 billion shillings. In Kenya, which continues to account for most of Safaricom's business, service revenue increased 11.3%, while net profit climbed 13.8% to 66.3 billion shillings.

However, the Ethiopian subsidiary drove much of the improvement in the group's consolidated results. Its service revenue surged 71.6% to 10.6 billion shillings, while its loss before interest, taxes, depreciation and amortisation narrowed 96.5% to approximately 400 million shillings. The improvement brought the subsidiary close to covering its recurring operating expenses.

Nevertheless, Safaricom Ethiopia has yet to achieve profitability. After accounting for depreciation and amortisation, including charges related to network construction since the company's entry into Ethiopia, the subsidiary recorded an operating loss of 11.4 billion shillings. The figure represents a reduction of more than 50% from the previous year. Meanwhile, the subsidiary narrowed its net loss by 43.2% to 8.8 billion shillings.

Safaricom maintained its target of reaching EBITDA break-even in Ethiopia by March 2027. Achieving that milestone would mean the subsidiary could cover its recurring operating expenses through its revenue before depreciation and amortisation. However, the milestone would not necessarily translate into a net profit, as depreciation, amortisation and financing costs would continue to weigh on earnings.

The Ethiopian operation now serves more than 15 million subscribers who have been active within the past 90 days. Its network comprises more than 3,500 sites and covers approximately 60% of Ethiopia's population, four years after the launch of commercial services.

Safaricom did not disclose a separate figure for its Ethiopian subsidiary's net cash burn during the reporting period. However, management believes the business has largely completed its most capital-intensive development phase. The operator expects capital expenditure in Ethiopia to range between 6 billion and 9 billion shillings for the full financial year, significantly below the funding requirements of its initial network construction phase.