Safaricom half-year net profit up by 45%
06 November 2013, 07:52
Nairobi - Kenya's largest mobile phone company Safaricom posted a 45 percent increase in its net profits for the first six months to 134 million U. S. dollars, up from 91 million dollars for the same period of 2012.
Safaricom CEO Bob Collymore told a news conference in Nairobi that the firm posted a strong growth in revenues, subscriber numbers and earnings for the six month period ended Sept. 30.
"We have once again delivered robust results for our shareholders driven by growth across all our revenue streams," Collymore told journalists in Nairobi.
"Voice is our core business with a 79.5 percent market share of voice traffic as per the Communications Commission of Kenya March 2013 statistics. Voice revenues grew on the back of a growing customer base which now stands at 20.8 million, a better network experience, convenient airtime distribution and attractive consumer propositions and promotions," Collymore said.
Safaricom, which is the most profitable company in East and Central Africa, said its earnings before interest, taxes, depreciation, and amortization (Ebitda) increased by 29.4 percent for the period to hit 340 million dollars, compared with 26.2 million dollars for the same period last year.
The company's total revenues grew 17.1 percent from 70 million dollars in 2012 to 81.5 million dollars to the period ending September, while customer numbers increased by 8.3 percent to reach 20.82 million.
Collymore said mobile money transfer service, M-Pesa revenues jumped by 19.85 percent to 14.7 million dollars, while the number of registered customers for the money transfer service rose by 19. 17 percent to 18.15 million.
He said that the number of M-Pesa agent outlets jumped by 73 percent in the six-month period to 78,856 increasing accessibility of the service to customers.
"As part of our commitment to democratize access to affordable broadband in Kenya, we have requested the government to allocate to Safaricom additional spectrum resources to facilitate the nationwide rollout of a 4G or LTE networks over the next 24 months, " Collymore said.