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Safaricom posts Sh. 31.5 billion net profit in six months

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Leading telecommunications firm, Safaricom, has announced a Sh. 31.5 billion net profit in the six month period ended September 30.

This record profit net represented a 20.2 per cent increase compared to the Sh. 26.2 billion net profit that Safaricom recorded in the same period last year.

“We accomplished all this while sustaining investment in our network, which saw us invest Sh. 17 billion in the first half of the year driven by increased network roll out and acceleration of broadband and fibre deployment,” said Safaricom CEO Bob Collymore.

The positive results were mainly driven by mobile money platform M-Pesa. The platform recorded a revenue growth of 18.2 per cent to Sh. 35.52 billion.

The half year financial results also revealed that fixed service revenue grew by 21.0 per cent to Sh. 3.91 billion.

Mr. Collymore further said that revenue generated from mobile data increased by 10.8 per cent to Sh. 19.45 billion.

“Strong business performance allowed us to create more wealth for our shareholders, who enjoyed a significant increase in dividends with a pay-out of over Sh. 44 billicelebratingd, adding that Free Cash Flow went up by 18.8 per cent to Sh. 38.508 billion.

According to the results, service revenue grew by 7.7 per cent to Sh. 118.21 billion while voice service revenue grew by 1.4 per cent to Sh. 48.03 billion.

The M-Pesa service enjoyed a steady 30-day performance as its customer growth over the period grew by 8.8 per cent to 21.01 million. The number of active mobile data customers on the hand grew by 3.8 per cent to 17.59 million.

“During the same period we also sustained over 890,000 jobs both directly and indirectly, including over 6,000 employees, 50 per cent of whom are women, and 1.7 per cent of whom are people living with disabilities,” Mr. Collymore said.

The Safaricom CEO also said that Safaricom is leveraging on the power of mobile technology and accessibility to bring new services into the market.

“We are leveraging the power of mobile technology to develop, take to market and scale propositions in health, agriculture and education, impacting livelihoods positively through products such as mobile health wallet M-TIBA, agribusiness solution DigiFarm, and Shupavu291, a learning tool that is giving millions of young learners in Kenya access to curriculum-approved educational content via the mobile phone,” he said.

The financial announcements came at a time when Safaricom is celebrating its eighteenth anniversary under the campaign dubbed ‘Nawe Kila Wakati’.

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