NAIROBI, Kenya, Aug 18 – AccessKenya Group has announced a 59.3 percent dip in its profit after tax to Sh30.6 million for the six months ended June 30.
The ICT firm attributed the drop to the weakening of the shilling during the period which saw its long term dollar loan impacted.
“The business suffered a foreign exchange loss as a result of the marked depreciation of the Kenya Shilling in the last couple of months (which) impacted on our dollar liabilities,” said Managing Director Jonathan Somen.
Gross profit for the business however rose from Sh470 million in June last year to Sh598 million while the operating expenses increased marginally by 13 percent due to what Mr Somen termed as ‘careful cost management’.
“The group has delivered on improved margins Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) reflecting the beneficial impact of the investments that we have made and continued to make,” said the MD.
The balance sheet of AccessKenya, which is the only listed ICT firm at the Nairobi Stock Exchange, also remains strong with total assets of Sh1.86billion.
Although there was a reduction in internet prices during the period, Mr Somen said its revenues were not impacted negatively as it was able to significantly grow its corporate and residential customer base.
Despite the slump, the firm remains optimistic about the future and has planned the roll out of its networks in areas of its customer demands.
Already, Mr Somen said with the appreciation of the local currency over the last few weeks, they have been able to reverse some of the losses experienced in their business and that the trading outlook is positive.