Safaricom has recorded a Ksh33 billion profit in half-year financial results to September 2020, a six percent drop as compared to the same period last year.
Announcing the results on Monday, the telco attributed the drop to the zero-rating of M-Pesa transaction below Ksh1,000 and a drop in voice calls.
M-Pesa recorded a revenue of Ksh35.9 billion as compared to Ksh42 billion similar period last year, a year on year (YoY)decline of 14.5 per cent.
Chief Executive Peter Ndegwa on Monday described the performance as “good” given the massive disruption that the virus has caused to most businesses in the country.
“It has been a good half year and we are seeing improvement in the second half. However, we know Covid-19 disruption is not over given the resurgence in infections,” he said.
According to Safaricom CEO Peter Ndegwa, voice revenues declined by 6.5 per cent YoY, while messaging declined 6.9 per cent YoY in line with global industry trends.
Voice and messaging now stand at 40.0 per cent of service revenue.
Mobile data grew 14.1 per cent YoY even as more customers resorted to work from home, which increased demand for mobile data and internet.
One month active Mobile data customers grew 11.6 per cent YoY to Ksh22.91 million, while distinct data bundle customers grew 22.7 per cent YoY to Ksh15.68 million.
Active 4G devices grew 56.0 per cent YoY while 4G devices using more than 1GB in the telco’s network grew 60.6 per cent YoY.