Safaricom Ethiopia has reported a strong 47.9 percent increase in total revenue to Sh9.97 billion in the third quarter of fiscal year 2026, driven by rising customer numbers, higher data usage, and a surge in M-PESA transactions.
The company’s performance was also boosted by a rebound in voice services, while active subscribers rose to 12.2 million.
Data released on Friday shows that service revenue rose even faster, climbing 54.2 percent to Sh9.68 billion, reflecting growing adoption of mobile offerings across the country. Mobile service revenue alone increased 53.1 percent to Sh9.54 billion, underlining the key role of core telecom services in the company’s growth.
Safaricom Ethiopia highlighted sharp gains in its customer base, reporting that three-month active users rose 71.7 percent to 12.2 million. Rising usage complemented this expansion, with average data consumption per user reaching 6.8 GB, a 2.9 percent increase compared with the same period last year.
Mobile data revenue climbed 34.2 percent to Sh6.48 billion, confirming data as the largest contributor to overall revenue. At the same time, voice services recovered strongly, with revenue more than doubling to Sh2.13 billion, a 144.7 percent increase year-on-year. Messaging revenue also grew 91 percent to Sh0.12 billion.
While total revenue expanded, trends in average revenue per user (ARPU) showed mixed results. One-month active ARPU in Kenyan shillings declined 22.5 percent to Sh130.27. However, measured in local currency, one-month ARPU rose 21.3 percent to ETB 142.77, reflecting growing engagement among Ethiopian subscribers. Voice ARPU increased 83.4 percent to ETB 37.39, while data ARPU rose 7.7 percent to ETB 127.94.
The company’s mobile money platform, M-PESA, continued to post standout growth. Transaction value surged 102.8 percent to ETB 20.37 billion, with transaction volumes climbing 191.8 percent to 364.3 million. M-PESA revenue, though still modest at Sh0.01 billion, rose 24.4 percent year-on-year, reflecting rapid adoption alongside early-stage monetization.
Fixed and wholesale services, a smaller part of Safaricom Ethiopia’s business, delivered the fastest growth rate, increasing 197.8 percent to Sh0.14 billion. This highlights the operator’s ongoing efforts to diversify revenue beyond mobile services.
The quarterly results point to a company in expansion mode, prioritizing scale and usage growth. Rising subscriber numbers and increased consumption across services helped offset pressure on some ARPU metrics, while the surge in voice and M-PESA activity indicates deeper engagement among customers.
Overall, Safaricom Ethiopia’s Q3 FY26 performance demonstrates the speed at which the operator is embedding itself in Ethiopia’s telecom market. Strong gains across data, voice, and mobile money underline its growing relevance to consumers’ everyday communication and financial needs.
As competition intensifies, the results suggest Safaricom Ethiopia is gaining traction, with revenue growth closely tied to operational expansion. The company’s strategy focuses on building a broad customer base, increasing service usage, and laying the foundation for longer-term profitability in one of Africa’s largest telecom markets.
