Safaricom Plc’s annual profit surged 67%, surpassing analyst expectations, driven by its Ethiopia unit’s turnaround. This marks the third consecutive profit rise for the East African telecom giant, lifting its annual earnings to Ethiopia’s second-largest mobile operator by revenue. The Ethiopia unit, which had been losing money, narrowed its deficit by 12 million Ethiopian birr after achieving cost savings and boosting subscriber growth.

The improvement comes as Safaricom, Kenya’s largest telecom firm, navigates a competitive market dominated by Airtel and Safaricom’s sister company, MoMo. The Ethiopia unit, previously a financial drag, now contributes 10% of Safaricom’s total revenue, providing much-needed stability. Analysts note the profit jump (over 5 million birr) signals stronger operational efficiency and strategic focus on high-growth markets.

The results underscore Safaricom’s ability to turn around underperforming units, a key metric for investors evaluating its long-term growth. The company’s focus on expanding its MoMo payment platform in Ethiopia, which now serves 5 million users, aligns with its broader goal of becoming Africa’s leading financial services provider. This turnaround in Ethiopia not only boosts Safaricom’s earnings but also strengthens its regional dominance, providing a competitive edge in the fast-growing East African telecom market.