Safaricom rakes in Ksh 63.4B in net profit

Safaricom has posted a 14.7 per cent increase in net profit to 63.4 billion shillings for the year ended March this year powered by double digit revenue growth by M-Pesa.

The Telco has proposed a dividend pay-out of one shilling and 58 cents per share.

Safaricom says talks on its chief executive Bob Collymore, successor is still ongoing refuting claims of pressure from the government to appoint a Kenyan to head the telco.

In the year to March 2019, Safaricom saw its revenue grow 7 percent to 240.3 billion shillings. Mobile money platform M-Pesa generated 74.99 billion shillings representing 31.2 percent of the total revenue. 

Mpesa growth was propelled by increased payment services and the recently launched Fuliza that has advanced customers 45 billion shillings.

Voice remains the top earner for Safaricom with revenue growing marginally by 0.3 per cent to 95.94 billion shillings.

Mobile data services registered a 6.4 per cent increase in revenue to 38.69 billion shillings.

Popularity of social media platforms such as WhatsApp, Facebook, Twitter, telegram and Instagram ate into Safaricom’s traditional messaging service, which registered a 1.3 percent decline to net 17.5 billion shillings in revenue.

This powered the telco to post 63.4 billion shillings in full year net profit.

There have been talks about replacement of the firm’s CEO whose contract runs out in August this year.

The company proposed a dividend pay-out of one shilling and fifty eight cents per share.

  

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