Safaricom PLC has been one of the companies at the NSE that has over the years grown its shareholder value driven by diversified revenue streams. For shareholders who bought shares 5 years ago at a share price of Ksh 7.15 returns have increased 4 fold to a price of Ksh 29.2 in the month of May 2018.
Investors have for the last five years enjoyed well deserved returns driven by stellar management and business planning and seamless handover from former CEO Michael Joseph and the current CEO Bob Collymore. The recent FY18 results saw dividend per share go up 13.4 per cent to Ksh 1.10 per share from Ksh 0.97 in the same period last year while earnings per share (normalized) recording a 20 per cent increase from Ksh 1.15 to Ksh 1.38. Over the last one year, Safaricom has proved to be one of the few companies that has held its ground while others tumbled in share price with profit warning preceding earning reports.
The company has enjoyed a business oriented and solid management with no issues of corporate governance. The Telco’s product innovations that create an ecosystem for the customers in the last couple of years improving y/y earnings while placing the company on the map.
Safaricom PLC continues to be a major contributor to government revenues remitting Ksh 43.85 billion in duties taxes and license fees for the period ended in 30th September 2017. So far the Telco has remitted Ksh 536 .5 billion in taxes since inception. This has then made it possible for the government to invest in various sectors of the economy thus enabling employment other sectors which contributes tax once again hence improving the GDP of the country; this scenario creates a cyclic effect consequently improving our economy.
The Telco continues to drive a digital revolution in the country with the evolution of MPESA from a mere sending and receiving money plat form to realizing a payment ecosystem with LIPA NA MPESA. According to the latest financial results, MPESA revenue grew by 16.2 per cent from 25.87 billion to Ksh 30.05 billion for the half year ended 30th September 2017. The digital revolution is driven by the over 156 MPESA Agents and 11 transactions per customer per month. Mshwari and KCB MPESA have also empowered Kenyans in accessing instant loans while improving their businesses and lives.
