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Safaricom Nets Ksh31.5 Billion Half Year Profits AS SMS Revenues Drop

Safaricom raked in Ksh31.5 billion in net profits in the half year ending September 30, 2018.

This reflected a a 20.2 per cent  increase compared to Ksh26.2 billion recorded within the same period last year.

M-Pesa revenues increased by 18.2% raking in Ksh35.5 billion in gross profits while mobile data revenues also recorded an increase of 10.2% to bring in Ksh19.45 billion.

Messaging revenue recorded a drop of 1.2 per cent to Ksh8.81 billion while fixed service revenue increased by 21.0 per cent raking in Ksh3.91 billion.

Read: Safaricom Lost Ksh293 Million To Fines For Poor Service In 2017

The telco paid more than Ksh48.2 billion against a service revenue of Ksh118.2 billion.

”This shows you how much we are paying to the government and these charges are being pushed to the consumer as well,” said Safaricom chairman Nicholas Ng’ang’a.

Safaricom CEO Bob Collymore noted that the increased taxation on mobile services might hinder accelerated growth in the field.

“Despite the opportunities we see for sustained growth, we are concerned about the impact of greater taxation on already strained consumer budgets, which may negate efforts to increase revenue generation,” said Collymore.

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Francis Muli

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. He believes in unearthing societal rots that have been hidden from the public eye. He has also carved himself a niche in writing business stories. He has worked for various organisations including Kenya Television Service, Business Today among others. Follow him on Twitter @FmuliKE.

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