Safaricom net income hits Sh18.1bn in 2015 H1

November 5, 2015
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Safaricom's CEO Bob Collymore attributed the recorded growth to measures the company has recently taken in a bid to connect with more customers/FILE
Safaricom’s CEO Bob Collymore attributed the recorded growth to measures the company has recently taken in a bid to connect with more customers/FILE
NAIROBI, Kenya, Nov 5 – Safaricom has recorded a 22.9 percent increase in its net income which has seen it hit Sh18.1 billion in its half year results for the period ended September 30. This is up from Sh14.71 billion during the same period in 2014.

Its service revenue has also grown by 12.3 percent to Sh84.9 billion from Sh75.60 billion. According to the company, the growth was attributed to a rise in its customer base.

M-PESA revenue also recorded growth during the period under review.

According to Safaricom, M-PESA revenue grew to Sh19.4 billion from Sh15.59 billion marking a 24.1 percent increase. The number of M-PESA agents in the country has also grown to 91,249 up from 80,330.

Additionally, there was a 22.7 percent increase in the number of 30 day active M-PESA customers who were 15.7 million during the period under review.

Safaricom’s CEO Bob Collymore attributed the recorded growth to measures the company has recently taken in a bid to connect with more customers.

“During the period under review, we restructured our sales and operations teams into regions, enabling us to take our services closer to the customer and enhance their experience,” he said.

“This has not only rewarded us with a growth in loyal customers but also strong financial and commercial performance.”

Safaricom continues to dominate mobile penetration in the country scooping 67 percent of overall subscriber share in the country. Its customer base also grew during by 14.8 percent to reach 25.1 million from 21.8 million while its voice traffic dominated the market at 68.8 percent of the overall voice traffic.

An increase in messaging revenue by 11.3 percent to Sh8.0 billion was attributed to the company’s SMS bundles plans.

Safaricom recorded a decrease in its free cash flow which stood at Sh9.5 billion. This was attributed to supplier payments for construction of the National Police Security Network.

Mobile data revenue, which accounts for 10.8 percent of the company’s service revenue grew by 40.9 percent.

According to Safaricom, the growth in mobile data was driven by increased uptake of data bundles. Additionally, Safaricom recorded a 25 percent growth in its 30 day active mobile data customers to 13.1 million.

The number of customers with 3G enabled devices stood at 4.8 million of which 4.1 million had Smartphones.

“We continue to focus on improving our network quality by increasing coverage and capacity to ensure excellent performance and superior customer excellence,” Collymore said.

“The shilling depreciated by 17.9 percent against the US dollar as at 30th September 2015 compared to 30th September 2014. Without the forex loss, the operating expenses as a percentage of total revenue would have been 21.6 percent.”

The results come at the back of Safaricom’s 15 year anniversary since it was launched in Kenya.

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