The company has declared a payment of a dividend of 30 cents per share to shareholders.
AccessKenya Group CEO Jonathan Somen said “Our leased line connections are up by 700 customers to 5400 total leased lines, our Revenues are up by 9% to Kshs 1.9 billion, our EBITDA is up over Kshs 100 million to Kshs 700 million, our pretax profits are up 62% to Kshs 212 million and our Profit After tax is up Kshs 42 million to Kshs 151 million. All our key metrics have improved significantly and this reflects our positioning as the number one choice of corporate service provider in Kenya.”
Somen attributed the improved performance to a significant increase in internet subscriptions, a highly robust and reliable network and strong customer service that have spurred customer growth for the company. To date, the company remains the provider of choice for businesses seeking high speed reliable internet connections and IT Solutions within Kenya.
Mr. Somen said that all the company’s key performance metrics improved in 2012, further noting that the company remains focused on continued growth, excellent value for money and high quality of service for all its customers.
“Our corporate leased lines grew from 4,700 to 5,400 compared to the same period in 2011. This is an indication that we remained steadfast in our core business – corporate data and IT solutions. More and more customers have realized that we have the best network and are signing up for our service,” he said.
The CEO observed that the company was also continuing to reap the benefits of migrating customers onto its world-class metro fibre network which continues to expand across all the key business areas of Nairobi and Mombasa with over 400 km of fibre now in the ground. Recently, the company rolled out a network optimization drive in which it intends to convert all wireless base stations to fibre backhauls so as to deliver more capacity.
“As a result of the growth in customer numbers, our total revenues increased by 9% last year despite the continued fall in Average Revenue per User experienced across the industry. This revenue increase, coupled with careful control of costs, boosted the EBITDA from KSh594 million in 2011 to KSh700 million in 2012, and an increase in profit before tax from KSh131m in 2011 to KSh212m last year. This has allowed us to pay a dividend to shareholders as well as continuing to fund our significant fibre expansion programme” he explained.
AccessKenya Chief Financial Officer Mr. Peter Ndirangu further commenting on the results said: “We are pleased with the progress of the company and with the increase in net profit and therefore Earnings per Share (“EPS”) which increased from 0.50 cents in 2011 to 0.69 cents in 2012. EPS was impacted by two material unusual items during the course of 2012. Firstly, we were negatively impacted by the extremely high interest rates, which more than offset the effect of normal and early loan repayments resulting in an increase in interest cost compared to 2011.
Secondly, as our tax rate goes back to 30% next year, following the expiry of our tax break to 20% post IPO, accounting standards require us to adjust our taxes via deferred tax to reflect the 30% level for this year. The two items combined have impacted our net profit by at least KSh30 million and therefore our earnings per share by at least 0.14 cents.”
Mr. Ndirangu continued to discuss the company’s gearing levels and investment. “The free cash flow generated by our business performance allowed us to invest nearly KSh400 million in our infrastructure – primarily on our world class metro fibre – while at the same time reducing our debt levels, with gearing levels falling from 79% at the end of 2011 to 49% at the end of 2012. Effectively this means that we are de-risking our business while being able to invest significantly and pay a dividend without access to external funding sources,” the CFO said.
The results come even as AccessKenya continues to tighten grip of the corporate data market whose penetration, the company believes, is still low at between 25% and 30%. AccessKenya CEO, Mr. Jonathan Somen maintains there are good prospects ahead for the company and has exuded confidence in the company’s performance saying AccessKenya has invested wisely in versatile infrastructure that will continue to form the backbone of its scalable services to the increasing number of customers.
“If you look at these results, you will agree that as much as the internet usage on mobile phones has gone up, the demand for fixed internet connectivity continues to grow and this is our core business,” he said. “Add to this the improvement in our IT services businesses including cloud services and you see a robust picture for future growth based on fibre and on cloud and other value added services. During 2013 and into the future, we will be focusing heavily on Cloud Services and other value added services while maintaining our growth and delivery of services in our core corporate data market.”
Mr. Somen concluded: “We are pleased to deliver these significantly improved ¬financial results which support our continued capital expenditure programme, the payment of a dividend of 30 cents per share for our shareholders, and ongoing improvements to speed, value for money, customer service and reliability for our customers.”