Safaricom posts Sh7.8 billion half year profit

Safaricom chief executive, Bob Collymore. Photo/FILE

What you need to know:

  • Safaricom's total revenue grew by 19 per cent to Sh59 million

Telecom firm Safaricom has rebounded to post a 94 per cent jump in after tax profits in its half-year profits driven by a growing customer base, easing inflation and a stable exchange rate.

Safaricom on Thursday reported Sh7.8 billion in profits, significantly higher than Sh4 billion made during a similar period last year.

“We are relieved to have recovered from the damaging price wars. We are now focusing on customer growth,” said Safaricom CEO Bob Collymore.

Total revenue grew 19 per cent to Sh59 billion. Voice revenues accounted for Sh37.4 billion or 63 per cent of total revenues.

However, the company reported that internal audits had shown gaps that still needed to be addressed in the quality of its voice service, especially in the Nairobi region.

In the non-voice segment, M-Pesa was the major contributor contributing Sh10.4 billion.

Registered M-Pesa users grew to 15.2 million, 9.7 million of whom actively utilise the mobile money transfer service at least once every thirty days.

The number of M-Pesa agents has also grown by 6,000 over the last few months to 45,540 countrywide.

Safaricom has over the last one year been increasing its focus on data and this was rewarded by a 20 per cent customer base growth to 5.6 million.

The telecom has indicated that it plans to introduce affordable smartphones into the market to better leverage on the growing data segment.

“Mobile and fixed broadband are key drivers of future growth. We will invest in all aspects to drive greater digital inclusion,” said Mr Collymore.

The company is now forecasting a low double digit growth in total revenue for the full year 2012/2013.