Safaricom PLC has today announced their results for the year ended in March 31st 2018. Total revenues jumped 9.8 per cent from Ksh 212 Bn in 2017 to Ksh 233.7 Bn. Earnings before interest and taxes (EBIT) increased by 12.6per cent from Ksh 70.38bn to Ksh 79.27bn for the year ended 31 March 2018. Excluding the one off adjustment in FY 17 growth was 19.9 per cent.Net income increased by 14.1% from Ksh 48.44bn to Ksh 55.29bn for the year ended 31 March 2018.
Despite the call for boycott last year by the Kenyan opposition leaders, customer numbers have increased by 5.1 per cent to 29.57mn as at 31 March 2018 from 28.13mn as at 31 March 2017.
“We maintained steady commercial momentum in FY 2018 and remained focused on our strategic pillars of Customer First, Relevant Products and Services and Operational Excellence, guided by our purpose: Transforming Lives. We maintained steady commercial momentum in FY 2018 and remained focused on our strategic pillars of Customer First, Relevant Products and Services and Operational Excellence, guided by our purpose: Transforming Lives.” Bob Collymore CEO Safaricom PLC
Voice service revenue increased by 2.3% from Ksh. 93.46 Bn to Ksh. 95.64Bn while Messaging (SMS) revenue increased by 6.2 per cent from Ksh 16.68bn to Ksh 17.72Bn for the year ended 31 March 2018 indicating marginal grow for the period under review.
Analysts from Sterling Capital Limited had recently projected that Safaricom’s revenues from voice and messaging are decreasing and will continue to decrease for the next three years. This is due to price competition and relatively low growth and change in usage patterns has resulted in 13% decline in Average Revenue Per User (ARPU) over the last 3 years to Ksh 282 FY2017.
Non-Voice service revenue (M-PESA/SMS/Broadband/Other service revenue) that continue to drive growth increased to 57.4% of total service revenues for the period under review. Mobile data revenue increased by 24.0 per cent from Ksh 29.33bn to Ksh 36.36bn whereas M-PESA revenue grew by 14.2% fr
Mobile data customers who were active in the last 30 days increased by 6.2% to 17.67m as at 31 March 2018 from 16.64m. M-PESA customers who were active in the last 30 days grew by 8.0% to 20.55m as at 31 March 2018 compared to 19.02m as at 31 March 2017.
“Looking ahead, our business remains fully cognizant of the shifts in the operating environment and has put in place measures to ensure we embrace the agility required to adapt to the ever changing marketplace. Safaricom is well positioned to sustain growth in portfolio and actively manage profitability with new disruptive initiatives and offerings in M- PESA, E-Commerce and Home and Enterprise solutions including use of Internet of Things.” Bob Collymore CEO Safaricom PLC.