Safaricom Records Sh74.7 Billion Profit

Kenya’s giant mobile network operator, Safaricom has recorded a net profit of Sh74.7 billion for the financial year ended March 31st, 2020.

This represents a 19.5 percent growth compared to the company’s earnings in the previous year thanks to growth in M-Pesa and data revenues.

Earnings from M-Pesa jumped by 12.6 percent to Sh84.4 billion while revenue from data hit Sh40.7 billion, a 12.1 percent growth.

Immediate former Safaricom CEO Michael Joseph attributed the performance to the company’s recapture of its customers’ needs after it simplified voice and data offers last October.

“My primary aim on my second stint was to regain the trust of our customers and timely deliver the needs. The results presented mirror this,” said Joseph.

Revenues from voice and message slumped by 1.4 percent and 12.3 percent to Sh94.5 billion and Sh17.2 billion respectively. 

Further to this, Safaricom managed to reduce its total operating costs for the first time, declining by 4.9 percent to Sh47.6 billion.

“We have become more agile and have for the first time reduced our operational costs year on year. Our capital expenditure is reflective of this efficiency and greater monetization.” The company’s Chief Finance Officer Sateesh Kamath noted.

The company’s total revenue before interest and tax rose to Sh101.5 billion from Sh89 billion last year.

Amid the Covid-19 pandemic, Safaricom says it will focus on growing more uses for its mobile money services and internet data.

“Covid-19 has brought technology at the forefront. This presents an opportunity for us to leverage on the shift,” new CEO Peter Ndegwa noted.

Safaricom’s board has recommended a Sh1.40 dividend payout to shareholders up from Sh1.25 last year.