Kenya’s largest telecommunication service provider Safaricom continued on its impressive run and cementing its place as one of the region’s most profitable organizations. In the period ending September 2016, the telecom giant registered a 32.4 percent increase in net revenue compared to last year to record Ksh 23.9 billion.
Service revenue grew by 15.4 percent to Ksh 98 billion driven predominantly by growth in 30 day active users and increased usage of non–voice services mainly M-PESA and Mobile data. Non-voice service revenue accounted for 53.4 percent of service revenue, recording a growth of 31.7 percent to Ksh 52.3bn. Overall voice service revenue now stands at 46.6 percent of service revenue and remained resilient growing by 1.1 percent to Ksh 45.7billion.
Safaricom Chief Executive Officer, Bob Collymore emphasized that the company remains steadfast in its quest to continue providing exceptional services and he underlined the company’s commitment to innovate relevant products for the clients.
“Safaricom believes that the Sustainable Development Goals (SDGs) form the world’s best
opportunity to create a more inclusive society. Following the launch of the SDGs in 2015, the company has taken the time to deliberate on which goals would match its corporate strategy and enable it to deliver services in line with its vision to transform lives sustainably,” says Mr. Collymore.
Despite successfully and sustainably diversifying its revenue sources voice service revenue still contributed the bulk of the company’s revenue. Messaging revenue grew by 8.1 percent to Ksh 8.6 billion and represents 8.8 percent of service revenue which was driven by significant increase in the number of active SMS bundle users.
Mpesa revenue recorded a growth of 33.7 percent to Ksh25.6 billion, growth that was driven by 12.5 percent increase in the 30 day active Mpesa customers to 17.6 million and a 38.6 percent growth in monthly usage per customer.
During the 6 months under review, free cash flow grew by 111.6 percent to Ks 20.1 billion on improved trading results and completion of the National Police Security (NPS) Network .
“Improving our network quality remains key and we continue with our efforts to increase network coverage and enhance capacity to ensure excellent performance and superior customer experience. In the 6 months up to 30th September 2016, we have invested Ksh 18.6 billion on capital expenditure,” says Mr. Collymore.
The business registered a strong financial performance recording growth across the revenue streams while delivering significant value to its shareholders. This also resulted in an underlying EBITDA margin of 46.5 percent which was a 2.8 percent improvement from a similar period last year.
- Total customer base grew by 6 percent to 26.6m.
- Service revenue growth of 15.4 percent to Ksh 98.0bn.
- Voice service revenue grew by 1.1 percent to Ksh 45.7bn.
- Messaging revenue grew by 8.1 percent to Ksh 8.6bn.
- 12.2 percent increase in 30 day active M-PESA customers to 17.6m.
- M-PESA revenue increased by 33.7 percent to Ksh 25.9bn.
- 13.7 percent increase in 30 day active mobile data customers to 14.9m.
- 46.3 percent growth in mobile data revenue to Ksh 13.4bn.
- Fixed service revenue growth of 29.1 percent to Ksh 2.40bn.