Safaricom posts a 4pc dip in profits

Safaricom posted a Ksh 12.63 billion after-tax profit for the year ending March 2012, down from Ksh 13.16 billion last year.

Total revenue grew by 12.8 per cent to Ksh 107 billion, with M-Pesa, data and voice services being the biggest contributors.

M-Pesa revenue increased by 43 per cent to Ksh 16.9 billion, while mobile and fixed data revenue increased by 23 per cent to Kshs 6.6 billion.

The telecommunications giant cited high inflation, depreciation of the shilling, high fuel prices and high interest rates for driving up operating costs.

The firm, while releasing its financial results on Thursday, proposed a dividend payout of 22 cents per share.

“Safaricom operates in an increasingly tough environment characterised by low voice tariffs, intense inflationary pressure, high borrowing costs and foreign exchange fluctuations.

"Despite these conditions, we grew our total customer base by 11 per cent to 19.1 million and our revenue by 13 per cent to Kshs.107 billion. In October we increased our headline voice tariffs, in response to difficult economic conditions, and this combined with our increased customer base, helped grow voice revenue by 9 per cent in the year," said Chief Executive Officer Bob Collymore.

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