Safaricom‘s net profits for the first six months ended September 30th grew by 9.5 percent to hit Ksh 26.2 billion up from Ksh 23.93 billion the same period last year.
The telco also saw 10.8% increase in the customer base to 29.5m. Voice service revenue grew by 3.6% to Kshs 47.35bn while messaging (SMS) revenue increased by 3.4% to Kshs 8.92bn. M-PESA revenue increased by 16.2% to Kshs 30.05bn.
The firm’s 30 day active M-PESA customers increased by 9.5% to 19.3m while mobile data revenue grew by 31.0% to Kshs 17.55bn. The monthly active mobile data customers increased by 13.5% increase to 16.9m. Fixed service revenue growth to 34.7% to Kshs 3.23bn.
According to Bob Collymore, Safaricom Limited CEO:“Kenya has gone through a period of uncertainty that has seen its second quarter GDP growth slow down to 5% from last year’s 6.3%, being impacted by events like the elections, drought and interest rate capping. Despite this Safaricom has performed exceptionally well for the period and ensured sustained returns to our shareholders. We believe this was possible due to the resilience of our business and our people.
Safaricom is set to launch an innovation lab; launch its e-commerce platform Masoko which many think will be a huge flop like BigBox and Blaze and accelerate its FTTH roll out; upgrading its M-PESA platform; and extend the NFC-powered M-PESA 1 Tap.
The firm’s service revenue grew by 12.0% to Kshs 109.73bn driven predominantly by growth in active users and increased usage of non–voice services mainly M-PESA and mobile data. Non-voice service revenue accounted for 56.8% of service revenue, recording a growth of 19.3% to Kshs 62.38bn.
Overall voice service revenue now stands at 43.2% of service revenue and remained resilient in the year growing by 3.6% to Kshs 47.35bn while its Lipa na M-PESA now has over 70,000 merchants who are active on a 30 day basis.
Safaricom’s mobile data revenue, which accounts for 16.0% of its service revenue, grew at 31.0% to Kshs 17.55bn driven by 13.5% growth in monthly active mobile data customers to 16.9m, increased bundle users and increased smartphone penetration during the period. Fixed data revenue increased by 34.7% to Kshs 3.23bn attributed to 24.9% growth in fixed service customers.