Market News

Safaricom Posts Half Year Profit of Sh23.9Bn

BY David Indeje · November 4, 2016 07:11 am

Kenya’s telecommunication company Safaricom Ltd (NSE: SCOM) has reported a rise of 30.8 percent of its Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) for the first half of 2017 compared to a similar period last year to KSH 50.8 billion.

The telecommunication company also registered a 32.4 percent growth in net income of KSH 23.9 billion for the half year ending September according to the company’s Chief Financial Officer Sateesh Kamath on Friday.

The performance was supported by revenue growth from non-voice services, service revenue and cost management.

Kamath, “Going forward, the drivers for growth will continue to be data. Data is internationally is what is driving telcos and jobs. Data will continue to grow and Mpesa should continue to grow because we shall keep expanding the ecosystem,” said Kamath who spoke to Soko Directory exclusively.

“The current revenue growth is driven by mobile data however, going forward we shall be looking at other avenues,” he added.

“These numbers represent more than an outline of our performance. They are the fulfillment of our Purpose. Our purpose is to transform lives,” said the Bob CollyMore the Chief Executive Officer Safaricom.

“Safaricom’s success is the result of its connection with Kenyans, which is critical to the Kenyan economy,” he adds.

Service revenue grew by 15.4 percent to KSH 98 billion driven predominantly by growth in 30 day active users and increased usage of non-voice services mainly M-pesa and mobile data. Non-voice service revenue accounted for 53.4 percent of service revenue recording a growth of 31.7 percent to Ksh 52.3 billion. On average the voice service revenue stands at 46.6 percent of service revenue and remained resilient growing by 1.1 percent to Ksh 45.7 billion.

Chief Executive Officer Bob Collymore said the company is increasing its guidance for the full year’s EBITDA to between Ksh94 billion to Ksh97 billion.

The guidance for the year to end in March 2017 had previously been between 89 billion and 92 billion shillings.

Further, the CEO said they will continue to create value for their stakeholders of putting its customers first, providing relevant products and enhancing excellence in its operations.

“Delivering our financial inclusion agenda remains at the core of our strategy to transform lives. To further deepen the financial inclusion and in response to our customers’ feedback, we have reviewed charges for person-person and Lipa na M-pesa transactions under Ksh 100 – M-Pesa Kadogo – will be free to send values of Ksh 100 and below,” said Collymore.

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About David Indeje

David Indeje is a writer and editor, with interests on how technology is changing journalism, government, Health, and Gender Development stories are his passion. Follow on Twitter @David_IndejeDavid can be reached on: (020) 528 0222 / Email: info@sokodirectory.com