A thorough breakdown of Safaricom’s Sh 63.4 billion net profit

Safaricom PLC has reported a net profit of Sh 63.4 billion, which translates to Sh 5.28 billion every month, Sh 173.7 million per day, Sh 7.27 million per hour and Sh 2,010 per second.

The Safaricom board has also recommended a dividend of KSh 1.25 per share and a special dividend of KSh 0.62 per share for the year ended 31st March 2019.

This is after the net income grew by 14.7 per cent to Sh63.4 billion up from Sh55.4 billion reported in 2018.

Mpesa revenue grew by 19.2 per cent to Sh74.99 billion, CEO Bob Collymore said. The service recorded a 10.2 per cent 30-day active customers to 22.6 million while its 30-day active mobile data customers increased by 6.6 per cent to 18.8 million.

Mobile data revenue increased by 6.4 per cent to Sh38.69  billion while messaging revenue declined by 1.3 per cent to Sh17.50 billion.

Voice service (incoming and outgoing) revenue grew marginally by 0.3 per cent to Sh95.94 billion while fixed service revenue increased by 22.7 per cent to Sh8.19 billion.

Collymore, who presented the results after having missed last year’s event due to poor health, said Safaricom was ready for fair competition on a fair play playground where investment and innovation are the true differentiator.

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Collymore said the Telco’s earnings before income tax grew 13.1 per cent to Sh89.6 billion even as the firm faced a number of challenges ranging from  shrinking consumer wallet, increased taxes and the need for control and affordability.

Mpesa subscribers have grown by 19.2 per cent to 22.6 million from 16.6 million in 2016.

Collymore said Safaricom will pump over Sh36 billion to double its 4G network coverage to 5000 base stations by March 2020.

This, he said, will cover all major towns and 80 per cent of Kenya’s population.

“We are pleased with the strong results we have delivered for the year, building on our long track record of delivering relevant products and putting the customer first. We foresee continued growth in the future,” Collymore said.

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