Safaricom profits hit Ksh.55B
Telecom operator Safaricom continued on its profitability track posting 14 percent growth in the year ended March 31.
Backed by strong data and M-Pesa revenue growth, Safaricom’s net profit rose to Ksh. 55.3 billion from Ksh. 48.4 billion a year earlier.
Defying boycott calls associated with the prolonged 2017 presidential elections, Safaricom revenue grew 10 percent to Ksh. 224.5 billion.
Briefing investors via video link from London, Safaricom CEO Bob Collymore said focus on developing customer specific products, enabled the business to grow even in a tough operating environment.
“To achieve these results we sharpened our focus on putting our customers first, delivering relevant products and services, and organizational effectiveness; a strategy that was exceptionally well executed considering the challenging business climate last year,” Mr Collymore said.
M-Pesa contributed Ksh. 62.3 billion to total income while a strong focus on mobile data saw revenues rise 24 percent to Ksh. 36.4 billion.
Safaricom chief financial officer Sateesh Kamath said the business continues to remain strong, generating healthy cash flow.
Safaricom plans to spend between Ksh. 35-38 billion in infrastructure expenditure. The board has proposed a dividend payout of Ksh. 1.10 per share pushing the firm’s dividend payout to Ksh. 44.1 billion.
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