Mobile phone operator Safaricom Limited has registered a 19.5 per cent to KSh 74.7 Billion for the financial year ended 31st March, 2020. This is compared to KSh 62.5 Billion posted in the same period last year.
These figures translates to aprofit of KSh 140,000 per minute or KSh 2,460.00 per second.
Latest financial figures for the year ended 31st March, 2020 shows that Safaricom recorded a 12.2 % increase in Mobile data revenue to KSh 40.7 Billion. This is as more subscribers shifted their work stations from the office to homes, a COVID-19 triggered trend that significantly pushed up consumption of mobile data.
Net earnings of Safaricom was boosted by double digit growth in mobile data usage along with sustained M-PESA usage as most transactions go cashless as a way of dealing with COVID-19 pandemic.
“The COVID-19 pandemic presents an opportunity for Safaricom to leverage its digital and data capability to support customers and community during this period and through the recovery process. We will focus on developing a range of digital products and services that will provide sustainable solutions to challenges in sectors like:agriculture, health, education and essential services,” said Peter Ndegwa, Safaricom CEO.
He added that while the 2021 financial year is going to be a challenging one, Safaricom is well placed to navigate its way through the uncertainty that lies ahead.
“In an increasingly digital economy, Safaricom plays a critical role in responding to the challenges weighed in by the COVID-19 pandemic. To demonstrate resilience as a business, we aim to innovate and execute with speed more sustainable solutions to the needs facing our customers now, which will ensure sustainability of our business in the long term,” said Mr. Nicholas Nganga, Chairman of Safaricom’s Board of Directors.
Safaricom’s Total Revenue increased by 4.8 per cent to KSh 252.22 Billion as at March 31st, 2020 from KSh 239.8 Billion. Subscriber numbers increased by 12.2% to 35.6 Million as at 31 March 2020 as competition in the telco’s business intensified.
Active monthly M-PESA customers increased 10.0% to 24.9 Million while mobile data one month active chargeable customers increased 10.2% to 19.6 Million.
Revenue from MPESA services grew 12.6 per cent to KSh 84.44 Billion as subscribers working from home took advantage of faster speeds and competitive bundles pricing to purchase data and execute their daily transactions using electronic cash.
With the acquisition of the MPESA brand from Vodafone plc, Safaricom is keen to introduce the product into new markets, especially the unexplored African continent.
“We completed the acquisition of the M-PESA brand, product development and support services from Vodafone Plc through a newly-created joint venture between ourselves and Vodacom.
This initiative will enhance M-PESA’s growth in Africa by giving us both full control of the M-PESA brand, product development and support services as well as the opportunity to expand M-PESA into new African markets,” said Mr Michael Joseph, outgoing Safaricom Chief Executive.
Safaricom realized a marginal 1.4 per cent in voice call revenues to KSh 94.5 Billion while earnings from SMS services declined 12.3 % to KSh 17.19 Billion. The firm spent KSh 36.1 Billion to boost the strength and coverage of its network, relying mostly on internally generated cash to finance this expansion.
In its response to COVID-19, Safaricom has contributed KSh 6.5 Billion to the National COVID-19 Emergency Response Fund, to help cushion its subscribers and Kenyans at large from negative impacts of the pandemic.
As at 31 March 2020, Safaricom’s bank borrowings were KSh 8.0Billion while cash and cash equivalents stood at KSh 26.76Billion, leaving net cash of KSh 18.76Billion.
The mobile company remitted KSh 110.98bn in duties, taxes and license fees for the year ended 31 March 2020. This increased the total duties, taxes and fees paid since inception to KSh 809.50 Billion.
The firm’s Board of Directors has proposed a total dividend payout of KSh 56.09 Billion or KSh 1.40. This is 80% of the profit and total comprehensive income for the year excluding the one-off exceptional item of KSh 3.3Billion, used to acquire the MPESA brand.