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M-PESA and Voice Service drive Safaricom’s net pro...

M-PESA and Voice Service drive Safaricom’s net profit to sh63.4 billion

Voice service revenue and M-PESA were the greatest contributors to Safaricom’s net profit of sh63.4 billion.

Voice service revenue grew by 0.3 per cent to sh95.94 billion while M-PESA revenue grew by 19.2 per cent to sh74.99 billion. The telco has 20.5 million active M-PESA users.

Total revenue stood at sh240.3 billion as the telco looks set to be the first dollar billion revenue generating company in the region.

Earnings from mobile data increased by 6.4 percent to sh38.7 billion, while fixed services revenue grew by 22.7 percent to sh8.9 billion.

Commenting on the results, company’s CEO Bob Collymore said “We achieved this by focusing on the customer, investing in the quality of our service, the performance of our network and creating differentiated customer experiences.”

He added that looking ahead, the business will sustain its momentum of investing in the quality of their service and diversification of their revenue portfolio to ensure sustained returns to shareholders.

Among other notable achievements in the 2018 financial report is that Safaricom has 6,130 current staff members comprised of permanent employees and contractors. The average age is 27 years. Half of the staff are women with a third senior management also being women.

It also sustained more than 800, 000 jobs in the economy during the financial year.

Highlights

Here are the highlights of the report:

  • Service revenue growth of 7 per cent to sh240.30bn.
  • Voice service (incoming and outgoing) revenue grew by 0.3 per cent to sh95.94bn.
  • M-PESA revenue grew by 19.2 percent to sh74.99bn.
  • Mobile data revenue increased by 6.4 per cent to sh38.69bn.
  • Messaging revenue declined by 1.3 percent to sh17.50bn.
  • Fixed service revenue increased by 22.7 per cent to sh8.19bn.
  • Total customer base increased by 7.7 percent to sh31.8m.
  • 30-day active M-PESA customers increased 10.2 percent to sh22.6m.
  • 30-day active mobile data customers increased 6.6 percent to sh18.8m.

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