15 Reasons Why Safaricom’s Net Income Has Increased to KES 48.4 Billion

One year down the line and Safaricom has announced a net income of KES. 48.4 Billion up from KES. 38.1 Billion the previous year. That is a whopping 27 % increase for the year ended 31st March 2017!

That said, what contributed to the growth? Here are 15 higlight to help you understand.

  1. Customer base increased by 11.8% to 28.13million as at 31 March 2017 from 25.16million as at 31 March 2016.
  2. Mobile data customers who were active in the last 30 days increased by 18.1% to 16.64million as at 31 March 2017, from 14.08millionas at 31 March 2016.
  3. M-PESA customers who were active in the last 30 days grew by 14.6% from 16.60million to 19.02million as at 31 March 2017.
  4. Service revenue increased by 14.8% from KES. 177.78 billion to KES. 204.11billion in the period ended 31 March 2017.
  5. Voice service revenue increased by 2.9% from KES. 90.80 billion to KES. 93.46 billion in the period ended 31 March 2017.
  6. Messaging (SMS) revenue declined by 3.7% from KES. 17.33 billion to KES. 16.68 billion in the period ended 31 March 2017.
  7. Mobile data revenue increased by 38.5% from KES. 21.15 billion to KES. 29.29 billion in the period ended 31 March 2017.
  8. Fixed service revenue increased by 37.4% from KES. 3.82 billion to KES. 5.24 billion in the period ended 31 March 2017.
  9. M-PESA revenue grew by 32.7% from KES. 41.50 billion to KES. 55.08 billion for the period ended 31 March 2017.
  10. Non-voice service revenue (M-PESA/SMS/Broadband/other service revenue) increased from 48.9% to 54.2% of total service revenues, for the period ended 31 March 2017.
  11. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 24.7% from KES. 83.07bn to KES. 103.61bn for the year ended 31 March 2017, excluding a one-off adjustment of KES. 3.4bn, growth was 20.7%.
  12. Earnings before interest and taxes (EBIT) increased by 27.7% from KES. 55.12 billion to KES. 70.38 billion for the year ended 31 March 2017,excluding the one-off adjustment, growth was 21.6%.
  13. Net income increased by 27.1% from KES. 38.10 billion to KES. 48.44 billion for the year ended 31 March 2017. Excluding the one-off adjustment, growth was 18.3%.
  14. Normal dividend payout recommended of KES. 38.86 billion, an increase of 27.5% from KES 30.48 billion for the period ended 31 March 2017.
  15. Special dividend of KES. 27.24 billion (KES 0.68 per share) was declared and paid by 1 December 2016 (2016: Nil).

     editor@biznews.co.ke

About the Author

Muhatia
Muhatia is the Managing Editor of Biz News Media Reach him via editor@biznews.co.ke