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M-Pesa and Data Drives Safaricom’s Growth as Profit Dips


Safaricom has announced its half year financial result for 2011/2012. The company’s profit after taxation decreased by 47.4% to stand at 4.0 Billion from 7.6 Billion last year. Active subscriber base grew by 8% to stand at 18.1 Million. Of the the subscribers 82.4% have M-Pesa are so are also registered as per the CCK requirement.

Generally Safaricom’s revenue grew by 5.3% to stand at 49.6 Billion in the last 6 months. Of that Data revenue grew by 30.4% to stand at 14.6 Billion while M-Pesa revenue grew by a massive 49.3% to stand at 7.9 Billion. There was a growth of 36.3% in broadband revenue which stands at 3.1 Billion in September 2011.

Some interesting stats from the Safaricom Half year results;

  • M-Pesa agents now stand at 32,000 with the client base growing by 9.8% to stand at 14.9%
  • Ksh 314 Billion ($3.15 bn) worth of M-Pesa transactions were moved in the six months
  • 82.4% of Safaricom’s clients are now using M-Pesa
  • 43% growth in Safaricom data clients to stand at 5.1 Million
  • Mobile and Fixed Data revenue grew by 36.3% to stand at 3.1 Billion
  • Safaricom controls 92% of Kenya’s data market according to CCK
  • 52% of Safaricom network is now 3G active
  • Safaricom rolling out 21Mbps 3G network but is also testing 42Mbps network in some areas
  • Safaricom not pursuing the fibre-to-home ideas as it get some lessons over experience with the same
  • Fixed data clients up by 92% to stand at 6,177 from 3,223 in September 2010
In the data sector, around 20% of data users are bringing in 80% of the revenue. This might be due to many factors including lack of content and low penetration nationally. SMS revenue decreased by 0.4% as many of the lotteries which generated much revenue decreased. Also voice charges decreased and thus subscribers would rather call than SMS in more instances.
ARPU decreased by 3.9% to stand at Ksh 438.9. Data ARPU on the other hand, increased marginally.
Full release of the half year results can be found hereย http://bit.ly/trHvm4

Written by Robert

Respected Kenyan blogger, tech evangelist, and social justice activist. Robert is known for his hard-hitting articles and opinions disseminated through his Twitter handle @RobertAlai or Facebook page (www.fb.com/RobertAlai).

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