Businesses & Financial News

Safaricom net profit dips to Sh67.49 billion, offers lucidity on Ethiopian deal

By Monica Muema

Safaricom increased its Service Revenue by 12.3% to KES 281.11 Billion and Earnings before Interest and Tax (EBIT) by 13.5% to KES 109.13 Billion.

Voice service revenue grew by 0.8% to KES 83.21 Billion; mobile data revenue grew by 8.1% to KES 48.44 Billion, while M-PESA revenue grew by 30.3% to KES 107.69 Billion.

“Our strong growth and achievements this financial year are due to the strong strategy execution, a dedicated staff force, and the business commitment to prioritize the needs of our customers.

We will continue to be a sustainable purpose-led business as we transition to become a technology company by 2025,” said the firm’s Chief executive Peter Ndegwa.

The continued focus on customers led to a 6.4% increase to 42.44 Million in one month active subscribers for the period, with customers growing across all revenue streams.

Safaricom invested over KES 39.34 Billion in Capital Expediture (CAPEX) in Kenya to maintain and expand the network and ensure Kenyans enjoy reliable network coverage across the country and uninterrupted data services.

Safaricom also invested KES 10.44 Billion in Ethiopia as we fast track our network rollout plans. This brings the total CAPEX spend for the year under review to KES 49.78 Billion a 42.4% increase from last year.

M-PESA, which marked its 15th anniversary this year, hit the 30 million active customer mark in Kenya. A significant sign of M-PESA’s progress was the 63.4 percent growth of Lipa na M-PESA merchants to just below 500,000.

M-PESA now has over 3.2 million businesses accepting payments under its portfolio, while the M-PESA business app has about 100,000 active businesses.

With the new business strategy and the renewed focus on the customer, Safaricom, in the new Financial Year, plans to accelerate new growth areas, delivering superior customer experience in order to be a purpose-led Technology Company by the end of 2025.

Meanwhile, the firm is set to launch commercial operations in Ethiopia within the year as part of the company’s regional expansion efforts to provide world-class telecommunication services to over 112 million Ethiopians.

In readiness for the commercial launch, Safaricom Ethiopia has recruited a team of over 300 staff, of which 50% is local talent, with plans of reaching 1,000 in the next financial year.

The business also has on boarded distributors, secured four retail shop locations and set up the first outsourced call centre in Addis Ababa.

Safaricom Ethiopia has secured approvals for towers development, built two data centres, made the first test call, sent out the first test SMS and completed the first data session.

 835 total views,  1 views today

Comments
Loading...
Social Media Auto Publish Powered By : XYZScripts.com