Safaricom profit soars
By Semaj Itosno, Nairobi, Kenya
Leading mobile telecommunications company Safaricom has posted Ksh 25.5billion in pre-tax profits driven by a vibrant mobile money transfer system.
Releasing its financial results today for the year ended 31st March 2013, the company said its MPESA revenue increased by 29.5 per cent to Kshs 21.8bn.
“These solid results re-affirm our strategy to transform lives through the provision of quality services, … through our continued investment in technology and deepening financial inclusion, with services such as M-Shwari on the M-PESA platform,” said Bob Collymore, Safaricom CEO.
M-Shwari allows M-PESA customers who register with Safaricom’s banking partner, Commercial Bank of Africa (CBA), to save, earn interest and access micro loans using their mobile phones.
“We already have 1.2 million active customers using M-Shwari,” said Mr. Collymore.
M-PESA registered customers now stand at 17.1m which is 88 per cent of the company’s total customer base. The most profitable company in Kenya financial results reveals growing investment that is driving shareholder returns.
The company’s profit after tax increased by 39 per cent to Ksh 17.5bilion and its recommended dividend per share has gone up 41 per cent to Kshs 0.31.
In the period under review, there was 30 per cent growth in SMS revenue to Kshs 10.13bn.
On the other hand, mobile data revenue grew 21 per cent to Kshs 6.3bn and there was increase in active mobile data customers to 7.1m, representing 37 per cent of the company’s total customer base .
Collymore said the company’s focus is on network quality, handset pricing and out-of-bundle tariffs that has driven a massive 57 per cent growth in mobile data customer numbers to 7.1 million.
M-PESA continues to be a major revenue for Safaricom driver contributing Kshs 21.8bn which is 18 per cent of total revenue.
“We expanded our agent footprint by 66 per cent and closed the year with 65,547 agents up from 39,401 agents in the previous year …voice remains a major revenue generator and recorded impressive growth of 13% and contributed 66% to service revenues. This was primarily driven by an improved network experience, recovery from damaging price wars, convenient airtime distribution and attractive consumer propositions and promotions,” said Collymore.
Customer numbers grew by 351,343 to 19.4 million; this is after barring 1.4 million customers who did not meet the new customer registration standards.