Safaricom Made A Profit Of Ksh196 Million Per Day In The Last Financial Year

Peter Ndegwa
Safaricom CEO Peter Ndegwa. [PHOTO/ COURTESY]

Safaricom has announced a 14.3 percent increase in profits after tax to Ksh71.7 billion in the financial year ending March 31, 2020, which translates to Ksh196.4 million per day.

The service revenue grew by 4.8 percent to Ksh251.22 billion as at March March 31, 2020 from Ksh239.77 billion in the previous year.

Safaricom recorded a customer base growth of 12.2 percent to 35.6 million as at 31 March 2020.

Voice and messaging revenue recorded a blended decline of 3.3 percent, partly driven by  competitive pressures and migration to newer technologies, and partly by the impact of corrective actions taken last year to make it easier for customers to manage their premium rate subscriptions, or opt out. Voice and messaging account for 44.4 percent of service revenue.

Safaricom customers on average are now using more than 1GB per month, which achieved the telco a growth of 12.1 percent for the year. Mobile data now accounts for 16.2 percent of Service Revenue. Growth in mobile data was driven by increased smartphone penetration and usage and a 28.3 percent reduction in effective rate per MB.

Voice calls accounted for 34.5% of the total service revenue.

The telco proposed dividend for the year under review at Ksh56.09 billion. The proposed dividend per share (DPS) of Ksh1.40 has been computed at 80 percent of the profit and total comprehensive
income for the year.

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