Safaricom net profit rises 9.5% to KES 26.2 bln in H1

News Wireless Kenya 3 NOV 2017
Safaricom net profit rises 9.5% to KES 26.2 bln in H1

Kenyan operator Safaricom said its net profit increased by 9.5 percent to KES 26.2 billion for the first six months ended 30 September compared with KES 23.93 billion in the same period in 2016. Excluding a one-off adjustment and its tax impact, net income growth was 21.4 percent. Data income rose from KES 13.4 billion in 2016 to KES 17.55 billion, and total revenues grew by 12.1 percent to KES 114.43 billion. 

Service revenue grew by 12.0 percent to KES 109.73 billion, driven predominantly by growth in active users and increased usage ofM-Pesa and mobile data. Non-voice service revenue accounted for 56.8 percent of service revenue and was up 19.3 percent to KES 62.38 billion. Voice service revenue remained resilient, growing by 3.6 percent to KES 47.35 billion.

M-Pesa revenue recorded growth of 16.2 percent to KES 30.05 billion, driven by a 9.5 percent increase in active M-Pesa customers to 19.3 million. The total customer base grew by 10.8 percent to 29.5 million at 30 September, as the operator continues to focus on customer acquisition and retention. 

EBITDA rose by 6.8 percent to KES 54.27 billion, and Safaricom reported 8.9 percent growth in EBIT to KES 37.53 billion. Excluding a one-off adjustment of KES 3.4 billion in the H1, underlying EBIT grew 20.6 percent and the EBIT margin was up 2.3 ppts year-on-year. 

Safaricom said its guidance for FY18 has not changed, with EBIT in the range of KES 71-75 billion and capital expenditure at KES 35-38 billion.

Categories:

Mobile

Companies:

Safaricom

Countries:

Kenya

Tags:

Voice services, Data services, e-Payment, Financial figures

Related Articles

KENYA 9 MEI 2018

Safaricom FY net profit rises 14.1% to KES 55.29 bln, customers up 5.1%

Kenyan operator Safaricom said net profit increased by 14.1 percent to KES 55.29 billion in the financial year ended 31 March year on year. Excluding the one-off adjustment of KES 3.35 billion in the previous financial year (FY 2017), net profit growth was 19.9 percent. Service revenue increased by 10 percent to KES 224.54 billion with M-Pesa revenue 14.2 percent higher at KES 62.91 billion.

KENYA 12 DEC 2017

Safaricom launches voice biometrics to enhance customer service

Safaricom has introduced a voice biometrics system called Jitambulishe to enable customers to access services through a quicker and less intrusive vetting process. Customers can use their voices for authentication before accessing assisted services such as resetting M-Pesa PIN, and PUK requests, significantly cutting down the steps a customer goes through. It will also reduce fraud and identity theft.

KENYA 5 DEC 2017

Safaricom enhances M-Pesa for visually impaired customers

Safaricom has announced the launch of M-Pesa services for visually impaired customers to mark this year's International Day of Persons with Disabilities (03 December). It enables customers to access mobile money services by dialing 234, then selecting the "M-Pesa Services" option, followed by the "M-Pesa Balance" option. This allows users to enter their PIN and have their balances read out to them.

KENYA 1 DEC 2017

Huawei to showcase photos of Kenya taken from Safaricom base stations

Huawei Technologies has launched Explore Kenya, providing images of the country taken from Safaricom's mobile base stations. The campaign is called "Kenya: Exploring a new point of view" and will be shown on several digital communication channels globally. The aim is to show the modernity, diversity and beauty of Kenya to millions of people around the world, and has support from the Kenya Tourism Board lending support.

SOUTH AFRICA 13 NOV 2017

Vodacom South Africa service revenue up 7.7% to ZAR 33.9 bln in H1

Vodacom South Africa's revenue increased by 7.7 percent to ZAR 33.9 billion in the first six months to 30 September, boosted by equipment revenue growth of 18.4 percent, reflecting the improved exchange rate to the US dollar that assisted its strategy of driving uptake of affordable smart devices. The firm added 2.9 million customers in the period, reaching 40.0 million, up 12.1 percent on the previous year, supported by segmentation and bundle strategy. 

AFRICA 13 NOV 2017

Vodacom Group revenue rises 4.5% to ZAR 42 bln in H1

Vodacom Group has reported a 4.5 percent increase in revenue to ZAR 42.0 billion in the first half-year ending 30 September compared with ZAR 40.15 billion in the same period in 2016. The group added 4.3 million customers during the first half, 2.9 million in South Africa and 1.4 million in its international operations, to reach just over 71 million customers, up 11.8 percent. Group EBIT decreased 0.2 percent, and the EBIT margin decreased by 1.2 percentage points to 25.8 percent.  

KENYA 6 NOV 2017

Kenya's political opposition calls for boycott of Safaricom products

Kenyan opposition the National Super Alliance (NASA) has called on its supporters to shun services and products from Safaricom and two other companies. The political coalition says the boycott is an act of economic sabotage against corporations that they claim are affiliated to the ruling Jubilee administration. NASA has called for a boycott of Safaricom for failing to transmit ballot results from polling stations to a national tallying centre in Nairobi. Safaricom, which in September rejected the allegatio

KENYA 6 NOV 2017

Safaricom mulls regional expansion for profit growth

Safaricom is seeking to expands its top line by extending its footprint across Africa, starting with Kenya's neighbours, reports Business Daily. Chairman Nicholas Ng'ang'a said the expansion plans had gained impetus following recent ownership changes at the company, which he said allowed it to set up shop in under-served areas in the region. On 07 August, UK multinational Vodafone transferred its 35 percent stake in Safaricom to its South African subsidiary, Vodacom. 

KENYA 31 OKT 2017

Safaricom CEO takes medical leave

Kenyan operator Safaricom announced that its CEO Bob Collymore has started medical leave to receive specialised treatment for a number of months. During this time, Sateesh Kamath, the current CFO who is also Collymore's alternate on the board, will take a primary role. He will be supported by Joseph Ogutu, Director for Strategy and Innovation at Safaricom. 

KENYA 9 OKT 2017

Safaricom begins regional home fibre roll-out

Safaricom has begun its Fibre to Home regional roll-out plan. The operator already has 95,000 homes connected to its fibre infrastructure. The first phase of the Safaricom Fibre to Home will start with Kitengela town and its environs, targeting 14,000 homes with a plan to reach 40 percent penetration within the next three months. Other towns that are targeted in this phase include Athi River, Buruburu, Ngong Road, Runda, Ruaka and Karen.

KENYA 21 AUG 2017

Safaricom loses USD 4 million in election slowdown

Kenyan operator Safaricom lost USD 4 million following the 08 August elections as residents stayed at home and many businesses were shut in the run-up to and during the polls, as people feared violence. Safaricom chief executive Bob Collymore told Reuters that most M-Pesa users who rely on daily wages had no cash to send during the period. Its network of M-Pesa agents also shut down while others reduced the cash they were holding. 

KENYA 25 JUL 2017

Safaricom's head of M-Pesa resigns after a year

Kenyan operator Safaricom announced that its head of M-Pesa has exited the company, just as the operator is undertaking a major upgrade of the mobile money platform, reports Business Daily. Ronald Webb, the company's director of financial services stepped down from his position on 25 July after a year in charge of M-pesa. Bob Collymore, Safaricom's chief executive, informed employees of Webb's imminent departure, saying he was moving back to the UK "for family reasons".  

KENYA 10 MEI 2017

Safaricom's FY net profit up 27.1% to KES 48.44 bln

Kenyan operator Safaricom's net profit increased by 27.1 percent to KES 48.44 billion for the year to end March, from 38.10 billion the year before. Excluding the one off adjustment of KES 3.4 billion, net profit growth was 18.3 percent. Total revenue increased 8.8 percent to KES 212.89 billion from 195.68 billion in 2016. Service revenue rose by 14.8 percent to KES 204.1 billion from 177.78 billion. Service revenue grew by 14.8 percent to KES 204.1 billion driven predominantly by growth in active users and

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.