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**Comprehensive Report on Safaricom PLC**

**Executive Summary**

This report provides a detailed analysis of Safaricom PLC, a leading Kenyan mobile network operator. The report covers the company's current status and financial health, historical performance, major challenges and opportunities, recent news and events, and future outlook. Safaricom has demonstrated resilience and growth, driven by robust revenue and profit increases. The company faces challenges such as market competition and regulatory changes but also has significant growth opportunities, particularly in the digital health sector. This report aims to offer insights into Safaricom's performance and future prospects.

**1. Current Company Status and Health**

Safaricom PLC, headquartered in Nairobi, Kenya, has shown impressive financial results for the year ended 31 March 2025. The company reported:

- **Service Revenue:** Increased by 10.8% YoY to KShs 371.4 billion.
- **Net Income:** Rose by 12.7% YoY to KShs 95.5 billion.
- **Operating Profit (EBIT):** Increased by 29.5% to KShs 104.1 billion.

These figures highlight Safaricom's strong financial performance and operational efficiency.

**2. Historical Company Performance**

Safaricom has consistently demonstrated growth over the years. Key historical performance metrics include:

- **Revenue:** KES 385.23 billion in the last 12 months.
- **Profits:** Earned KES 69.80 billion in the last year.
- **Earnings Per Share (EPS):** 1.74.
- **Stock Price:** Increased by 57.8% over the past year, ranking 12th on the Nairobi Securities Exchange (NSE).
- **Earnings Growth:** Exceeded the 5-year average (-3.6% per year) with a 10.8% growth over the past year.

**3. Major Challenges and Opportunities**

Safaricom faces several challenges, including:

- **Market Competition:** Navigating intense competition in the mobile network sector.
- **Regulatory Changes:** Adapting to evolving regulatory requirements.
- **Technological Advancements:** Keeping up with rapid technological changes.

Despite these challenges, Safaricom has significant opportunities:

- **Digital Health Sector:** A Sh104.8 billion investment in Kenya's healthcare sector to digitize the healthcare system through its Integrated Healthcare Information Technology (IHT) project.

**4. Recent News and Events**

Safaricom has made several significant announcements recently:

- **Customer Milestone:** Surpassed 50 million customers in Kenya.
- **Shareholder Payout:** Delivered a KES 48 billion payout to shareholders following the approval at the 2025 Annual General Meeting.
- **5G Network Launch:** Launched a 5G fixed-wireless network in Kenya.
- **M-Pesa Acquisition:** Completed the acquisition of M-Pesa Holding Company Limited from Vodafone Group Public Limited Company.

**5. Future Outlook and Potential Developments**

Safaricom's Vision 2030 aims to establish the company as Africa's leading purpose-led technology company. Key strategic initiatives include:

- **Protecting and Growing the Core Business:** Ensuring the continued success of the core business in Kenya.
- **Accelerating the Transition to a Technology Company (TechCo):** Shifting focus towards technology-driven growth.

**Future Financial Projections:**

- **FY26 Group EBIT:** Expected to range between KES 144–150 billion.
- **Group Capex:** Projected at KES 72–78 billion.
- **Revenue Growth:** Forecasted to grow by 10% per annum.
- **Earnings Growth:** Expected to grow by 24% per annum.
- **EPS Growth:** Anticipated to grow by 18.6% per annum.

**Conclusion**

Safaricom PLC has demonstrated strong financial performance and growth potential. Despite facing challenges, the company's strategic initiatives and significant opportunities in the digital health sector position it well for future success. The company's vision and financial projections indicate a promising outlook, making it a noteworthy player in the mobile network and technology sectors.

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This report provides a comprehensive analysis of Safaricom PLC, offering insights into its current status, historical performance, challenges, opportunities, recent developments, and future outlook.