Safaricom Half-Year Results Drops 33.5 Billion Shillings

By Juma / Published November 12, 2022 | 10:44 am

KEY POINTS

In Ethiopia, Safaricom acquired 740,000 subscribers by the end of October, generating 98.3 million shillings in revenue from the market in the first month of operations.

KEY TAKEAWAYS

Voice revenue fell by 3.8 percent to 39.9 billion shillings, while total costs rose by a third to 31 billion shillings, largely on the back of the firm's investment in its new Ethiopia subsidiary.

Safaricom’s net profits for the first 6 months dropped by 10 percent to 33.5 billion shillings. The giant telecommunications attributed the drop to the costs incurred during its entry into the Ethiopian market.

During the six-month period, total revenue rose by 4.6 percent to 153.4 billion shillings in the period, helped by an 8.7 percent increase in M- Pesa revenue to 56.9 billion shillings, and an 11.3 percent jump in data earnings to 26.3 billion shillings.

At the same time, voice revenue fell by 3.8 percent to 39.9 billion shillings, while total costs rose by a third to 31 billion shillings, largely on the back of the firm’s investment in its new Ethiopia subsidiary.

“Given the impact of the MTR rates from 99 cents to 58 cents, a slowdown in business operations due to the elections period, increase in excise duty on sim cards and mobile phones, and a failed rain season leading to more economic hardship for the country Safaricom has done well to deliver solid revenue growth and a net income that is within the expected range,” said Safaricom chief executive officer Peter Ndegwa on Friday.

In Ethiopia, Safaricom acquired 740,000 subscribers by the end of October, generating 98.3 million shillings in revenue from the market in the first month of operations.

The sale of handsets has been the biggest contributor to Ethiopia’s revenue, with service revenue from the new market amounting to 9.1 million shillings.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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