East and Central Africa’s most profitable company Safaricom has sustained a growth trajectory in revenues for the past five years, indicating reliable revenue base with fluid execution. Data from the company indicates that from 2011 to 2015, Safaricom voice, MPesa, data, fixed service, SMS, handset revenue and other revenues have all been increasing each year.
The net income for the company has been stable recording an average increase of sh4.66 billion during the five year. There was only a dip in revenues between 2012 and 2011 where the company recorded a slight difference. In 2011, while the revenues were sh13.61 billion, in 2012 the figure stood at sh12.63 billion.
In terms of voice revenues, the company has recorded an average increase of sh5.96 billion during the five year period.
MPesa revenues stood at an average of sh4.26 billion during the five years.
Mobile data revenues recorded an average of sh2.59 billion during the same period.
SMS revenues recorded an average increase of sh2.02 billion.
The total revenues also recorded an average increase of sh17.14 billion.
In addition, the Safaricom’s operating costs have also been steadily increasing perhaps informed by its increasing customer base, which now stands at 23.3 million. The company recorded an average increase in operating costs of sh3.54 billion during the five years.
Perhaps as a result of this, the dividend payments have also been increasing. While in 2011 shareholders were paid sh20 cents per share held, they were given sh64 cents per share in 2015.
From the respective earnings, it is clear that MPesa is the main driver of Safaricom’s revenues.
During the release of the financial year ending March 31st 2015, the company’s CEO Bob Collymore affirmed that MPesa, now contributes 20 per cent of total revenue, continues to be a significant driving factor in the company’s growth.
It is likely that this earnings will continue to increase especially with the hosting of the MPesa server here in Kenya which was touted as the answer to increased transactions. Moreover, with the Hakikisha feature for MPesa users to guarantee that they send money to persons intended hence reducing fraud or sending to the wring person, trust will be further entrenched making the service more reliable.