Safaricom has today announced a 32.4 per cent growth in net profit jumping to Sh23.9 billion for the half year to September, albeit the firm saying most of its revenue came from non-voice services. This is the first time the firm has recorded such a high number without placing much consideration on its voice service.
The firm’s service revenue grew by 15.4% to Kshs 98.0bn driven predominantly by growth in 30 day active users and increased usage of non-voice services mainly M-PESA and mobile data. Non-voice service revenue accounted for 53.4% of service revenue, recording a growth of 31.7% to Kshs52.3bn. Overall voice service revenue now stands at 46.6% of service revenue and remained resilient growing by 1.1% to Kshs 45.7bn.
Despite the public backlash and stiff competition from other service providers, Safaricom’s mobile data revenue, which accounts for 13.7% grew at 46.3% to Kshs 14.9m, increased bundle users and smartphone penetration. The company introduced ‘My Data Manager’ functionality that gives users control in-bundle browsing. The function has seen bundle users grow by 38.5% to 7.4m. By 30 September, Safaricom had 10.5m customers on 3G and 4G enabled devices. In addition, the fixed data revenue increased by 29.1 to Kshs 2.4bn on the back of 21.6% growth in fixed service customers.
M-PESA revenue recorded a growth of 33.7% to Kshs 25.9bn driven by 12.2% increase in 30 day active M-PESA customers to 17.6m and a 38.4% growth in monthly usage per custom,er to 9.3 transactions per month.
Safaricom also launched a new service dubbed M-PESA Kadogo that allows free transactions for guys who send 100bob or below. According to the firm, the move was influenced by customer feedback who were of the opinion that M-PESA is too expensive for lower tier M-Pesa users.
“Safaricom believes that the sustainable Development Goals from the world’s best opportunity to create a more inclusive society. Following the launch of the SDGs in 2015, the company has taken the time to deliberate on which Goals would math its corporate strategy and enable it to delivers services in line with its vision to transform lives sustainably.” Bob Collymore, Safaricom CEO commented.