Safaricom rakes in Sh14.7bn H1 profit

November 4, 2014
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M-PESA revenue grew by 24.7 percent to Sh15.5billion compared to Sh12.5billion in the similar period in 2013/file
M-PESA revenue grew by 24.7 percent to Sh15.5billion compared to Sh12.5billion in the similar period in 2013/file
NAIROBI, Kenya, Nov 4 – Safaricom has made Sh14.7billion net profit in the half year ending September 2014 from Sh11.2billion the same period last year, representing a 30.6percent growth.

This was due to rise in total revenue which increased by 14.6 percent during the period to Sh79.34billion largely contributed by growth in mobile data revenue which went up by 52 percent.

“Our financial results continue to demonstrate our resolve to grow the business and returns to our shareholders,” Safaricom CEO Bob Collymore said while commenting on the performance.

The company however saw a slow growth in SMS revenue at 12 percent largely due to pressure from other messaging tools in the market.

M-PESA revenue grew by 24.7 percent to Sh15.5billion compared to Sh12.5billion in the similar period in 2013.

This growth was as a result of 10 percent increase in 30 day active M-PESA customers to 12.8million and an increase in the average number of chargeable transactions per month.

“M-PESA distribution channel now at 80,330 agent outlets, continue to provide accessibility to our customers,” Collymore said.

The company’s customer base grew by 4.9 percent to 21.85 million attributed to its retention programs and “superior product and services offerings.”

Voice remains Safaricom’s core business commanding a 78.1percent market share of voice traffic as per the recent Communications Authority of Kenya market report.

The segment revenue however grew by slightly by percent to Sh43 billion “supported by convenient airtime distribution and customer promotions.”

Despite the growth, the board of directors has not recommended any interim dividend to shareholders.

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