Safaricom sees 17% growth in total revenue - CNBC Africa

Safaricom sees 17% growth in total revenue

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Total revenue increased by 17 per cent to 69.2 billion shillings from 59.1 billion shillings in 30 September 2012.

Earnings before interest, taxes, depreciation and amortisation also increased by 29 per cent to 28.9 billion shillings.

“This set of results demonstrates our commitment to growing investment and shareholder returns through sustained commercial and financial performance across our entire service portfolio,” Safaricom CEO Bob Collymore said in a press statement.

“We have delivered well on our goal to transform lives by providing unmatched services; made huge improvements in our network quality; and deepened financial inclusion with the introduction of Lipa na M-PESA on the M-PESA platform.”

Profit before tax increased by 38 per cent to 15.9 billion shillings from from 11.5 billion shillings in the previous comparative year.

Safaricom has 79.5 per cent of the voice traffic in the country, with voice revenue up 12 per cent to 41.9 billion shilling from 37.4 billion shillings in the previous comparative year.

The revenue growth was on the back of the company’s a growing customer base, which now stands at 20.8 million people.

The company’s money transfer service M-PESA was a key revenue driver, contributing to 18 per of total revenue.

Agent outlets also grew by 73 per cent in the period to 78,856 people. Operating profit was also recorded at 16.1 billion shillings from 12.3 billion shillings.

Safaricom also launched their Lipa na M-PESA, a service that will enable cashless merchant payments, and facilitates trade between businesses and their customers while improving business efficiency.

Mobile data revenues increased by 43 per cent driven by impressive growth in customer numbers.

The company called upon Kenya’s government to allocate the network operator with additional spectrum resources to facilitate the nationwide rollout of a 4G or LTE network over the next 24 months.

Spectrum allocation in a number of African countries remains limited, preventing mobile network operators from upgrading their 2G and 3G networks to 4G.

“Our ‘Best Network in Kenya’ program will never stop and our commitment is to continue improving across all facets of the network throughout Kenya,” the company said.

“Over the next six months we will grow our 2G and 3G population coverage, including additional capex for 50 sites in counties where the return is not justified on a financial basis but is important to help improve security in those counties.”

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