Giant telecommunications company, Safaricom has registered a 14.7 percent increase in net profits to 63.4 billion shillings for the financial year ended March 2019.
In what might again be described as “crazy” profits from Safaricom, the revenue hit 240.3 billion shillings with the voice service revenue growing by 0.3 percent to 95.94 billion shillings.
The revenue from M-Pesa grew by 19.2 percent to 74.99 billion shillings making both the voice service and M-Pesa the two largest contributors to the company’s revenue.
The M-PESA, mobile data, messaging and fixed service revenue all up by 19.2, 6.4, 1.3 and 22.7 percent respectively while there was a 13.1 percent on a year-to-year growth in EBIT to 89.6 billion shillings with EBIT margin up 190bps to 35.8%.
Safaricom’s total customer base grew by 7.7 percent to 31.8 million. The company is also issuing dividends worth 50 billion shillings, 1.25 shillings per share an increase by 13.6 percent from the previous year to a dividend yield of 4.2 percent.
There will be also a special DPS of 0.62 shillings following strong performance hence a total dividend yield of 6.3 percent for the financial year.
Safaricom has announced plans to double its 4G network coverage to 5000 base stations by March 2020, covering all major towns and 80 percent of the Kenya population.
Safaricom expects to spend over 36 billion shillings in driving up additional 4G coverage, which will see the company roll out an additional 2,030 4G and 4G+ base station to reach more than 80 percent of the population.
“We are pleased with the strong results we have delivered for the year, building on our long track record of delivering relevant products and putting the customer first. We foresee continued growth in the future,” said Bob Collymore.
Safaricom invested 38 billion shillings in infrastructure this year, providing over 91 percent of Kenya’s population with 4G and 3G coverage and providing 2G coverage to 96 percent of Kenyans.