Safaricom registered a 22.9% jump in Earnings Per Share to KES 0.45 against a market target of Ksh 0.80 per share. The impressive results were driven by a 14.9%y gain in customer numbers to 25.1 Million.
Safaricom is currently keeping its eye peeled into level 4G subscribers with a new decentralized marketing that focuses on different regions of Kenya. In the Full-year 2016,the company is working to to deliver the largest annual increase in new subscribers in over 5 years with 1.8 Million additional subscribers in 1H2016 alone.
Beating the market estimates,Safaricom also took a piece of the market share from Airtel Kenya (6 months to June 2015; Airtel lost 608,168 subscribers, Telkom Kenya added 689,684).
In its Half Year Results Highlights,Service revenue grew 12.3% year on year to Ksh 84.9 Billion
Growth
-Voice revenue grew by 3.5%y year on year to Ksh 45.2 Billion
-Non-voice revenue grew 24.4% year on year to Ksh 39.7 Billion which accounts for 47% of revenue up from 42% in the previous year,
-M-Pesa revenue grew 24.1% year on year to KES 19.4 Billion
-Mobile data grew 40.9% yera on year to Ksh 9.2 Billion
-Messaging revenue grew 11.3% year on year to Ksh 8 Billion
-Fixed internet revenue grew 24.8% year on year to Ksh 1.9 Billion.
Market Recommendations
Financial Times- (FT) BUY
Bloomberg- BUY
Reuters- BUY
Cytton Investments- BUY
Standard Investment Bank- BUY
