Safaricom Group posted a resilient 1.2% growth in FY’24 shareholder net earnings to KES 62.99Bn prompted by better-than-expected operational results in Kenya. Group revenues grew 12.4% y/y driven to KES 349.5Bn emerging largely from volume-driven double-digit growth in M-Pesa and Mobile data.
The Board of Directors recommend a final dividend of KES 0.65 per share. In addition to the earlier issued interim dividend of KES 0.55, this raises the total FY’24 dividend to KES 1.20. This distribution fell within our total dividend estimate of KES 1.20 – KES 1.30.
Recommendation - We maintain our BUY recommendation on Safaricom on account of its promising growth prospects. At the current market price, the stock is trading at P/E ratio of 11.1x and a P/B ratio of 3.1x
