Safaricom 2020 Results: Safaricom has posted a net profit of Sh. 71.7 billion for the full year ended March 31 2020. This mega profit represented a growth of 19.5 per cent year on year, but normalized for the exceptional share of profit of joint venture, at 14.3 per cent year on year with service revenue growing to Sh. 251.2 billion.
These results further stamped Safaricom’s authority as the most profitable company in East and Central Africa. The year’s financial results were driven by growth in M-PESA revenue, which grew by 12.6 per cent, and contributed 33.6 per cent of the service revenue and mobile data which grew by 12.1 per cent to Sh. 40.67 billion.
M-Pesa revenue grew by 12.6 per cent to Sh. 84.44 billion while voice service revenue dropped 1.4 per cent to Sh. 94.45 billion. “Revenue growth for the year was driven by a strong performance on M-Pesa and a strong performance on mobile data,” Safaricom chief financial officer Sateesh Kamath said. M-Pesa now accounts for 33.6 per cent of Safaricom’s earnings.
Growth in mobile data revenue in the second half was 21 per cent, largely driven by the introduction of the non-expiry bundle offers which now account 40 per cent of mobile data revenue.
Below, we take a look at Safaricom’s key financial highlights for the full year ended March 2020.
Safaricom 2020 Results:
- Service revenue growth of 4.8 per cent to Sh. 251.22 billion
- Voice service (incoming and outgoing) revenue shrunk by 1.4 per cent to Sh. 94.45 billion.
- M-PESA revenue grew by 12.6 per cent to Sh. 84.44 billion.
- Mobile data revenue increased by 12.1 per cent to KES 40.67 billio.
- Messaging revenue declined by 12.3 per cent to Sh. 17.19 billion.
- Fixed service revenue increased by 10.7 per cent to Sh. 8.97 billion.
- One month active overall customer base increased by 9.5 per cent to 28.63 million.
- One month active M-PESA customers increased 10.0 per cent to 24.91 million.
- One month active chargeable mobile data customers increased 10.2 per cent to 19.62 million.
- 13.5 per cent growth in EBIT (Earnings/profit before Interest) to Sh. 101.01 billion with an EBIT margin of 38.6 per cent, up 3.0ppts YoY.
- Free Cash Flow up 11.4 per cent to Sh. 70.27 billion.