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Safaricom HY Profits Shoot By 14 Percent To Sh35.6 Billion

Michael Joseph
Safaricom Interim CEO Michael Joseph. [Courtesy]

Safaricom has announced a Ksh35.6 billion net profit in half year results for the period ending September 30,2019, representing a 14.4 per cent growth.

Voice income contributed the largest portion of the revenue, contributing to 34.7 percent followed closely by M-Pesa at33.8 percent. Mobile data was a distance third contributing 15.9 percent of the revenue while dropped to 6.9 percent.

Source: Safaricom

During the period there was an increase in the number of overall customers to 34.57 million with M-PESA one month active customers increasing to 23.61 million and mobile data customers increasing to 20.19 million customers.

Read: Peter Ndegwa’s Wife Jemimah Praises Him In Congratulatory Message Following Appointment As Safaricom CEO

“In order to support this growth, the company continued to invest heavily in its network focusing particularly on increasing 4G coverage, where the number of sites increased 50% year on year and coverage now extends to 500 towns across the country,” said the company in a statement.

Capital expenditure for the six months period stood at Ksh18.11 billion, financed from internally generated cash.

According to the acting CEO Mr Michael Joseph, the company is focused on rolling out 4G network across the country.

“We have achieved solid results despite challenges in the economy, driven mainly by strong M-PESA performance. We are fully committed to putting the customer at the heart of Safaricom, regaining customer trust and growing our market share,” said Joseph.

Read: Safaricom Appoints Peter Ndegwa As The New CEO

As at September 30, 2019 cash and cash equivalents stood at KShs 23.28 billion with no borrowings in the same period.

“Despite the challenges our business faces, with rising costs, reducing consumer power and increased regulatory actions, we believe that the outlook is postive and the Board has confidence in managementʼs ability to continuously provide relevant products and solutions to our customers,” said Safaricom chairman Mr Nicholas Nganga.

The Group continues to be a major contributor to the revenues of the government and remitted Kshs 58.85 billion in duties, taxes and license fees for the six months.

This increased the total duties, taxes and fees paid since inception to Ksh757.36 billion.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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