Safaricom profit down 1.7% to Ksh.67.49 billion

Kenya’s top company fears, strengths and strategy to stay relevant in market

Safaricom’s net profit plunged 1.7 percent to Ksh.67.49 billion in full-year results ended March 31, 2022, from Ksh.68.67 billion in March 2021

This is the second drop the telco has registered in nine years.

The profit includes its Ethiopian venture which the telco undertook a one-year bridge facility of Ksh.46.4 billion to finance its operation license the country in 2021.

Profit before tax stood at Ksh.109.12 billion from Ksh.96.16 billion in March 2021, representing a 13.5 percent growth.

M-Pesa revenues surged by 38.3 percent to Ksh.107.7 billion due to improved business activity after Kenya fully reopened the economy.

Total M-Pesa transactions value grew 34.0 percent year-on-year to Ksh.29.55 trillion and the volume of transactions grew 34.9 percent to 15.75 billion.

Mobile data revenue recovered 10.0 percent to Ksh.24.81 billion from 6.3 percent in half one of the financial year 2022 to Ksh.23.63 billion.

“We remain committed to investing in a superior network quality for our customers and deepening mobile internet penetration through enhancing network coverage, increasing 4G handset penetration and driving affordability of data.

The telco’s 4G population coverage now stands at 97 percent and smartphones on its network grew 10.2 percent to 18.5 million.

Capital expenditure stood at Ksh.49.78 billion growing at 42.4 percent year on year basis, out of which, Ksh.10.4 billion was spent to set up the Ethiopia network. Commercial operations in Ethiopia are set to kick off this year.

Safaricom’s debt currently stands at Ksh.65.31 billion as of March 2022 with its cash and cash equivalents currently at Ksh.30.78 billion leaving a net debt position of Ksh.34.53 billion.

Safaricom board has recommended a final dividend of Ksh.0.75 per share amounting to Ksh.30.04 billion, bringing the total payout for the year to Ksh.56 billion.

It will be subject to approval by the board at the Annual General Meeting (AGM) set for July 29, 2022.

Governor Ngilu secur
How 'Ugali man' cele

Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

Rate This Article: