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Cash-rich Safaricom gives away Ksh27.5bn to shareholders

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Safaricom CEO Bob Collymore says the company has a huge pile ofretained earnings.
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Mobile operator Safaricom has announced a special dividend of Ksh27.5 billion for its shareholders. The company’s board, which met on July 25th, agreed that a Ksh0.68 per share interim dividend will be paid to shareholders after 2nd September 2016.

This is an additional dividend over and above the Ksh0.76 per share for the year ended 31st March 2016 that the Board is recommending to shareholders at the Annual General Meeting on 2nd September 2016.

“There is room for this one-off special dividend of Ksh27.5 billion due to the cash position of the company, and the significant retained earnings of Ksh82 billion,” said Safaricom CEO Bob Collymore.

This is an additional dividend to what the company expects to recommend at next year’s AGM for the year ended 31st March 2017.  The special interim dividend will be paid out by 1st December 2016.

Telecommunications firm Safaricom announced a 19.6 per cent rise in net profit to Ksh38.1 billion in the year to March 2016, with much of the growth coming from non-voice services. Total revenue increased by nearly 20 per cent to Sh195.7 billion.

Total company sales rose by 19.8 per cent to Ksh195.7 billion. Revenues from services such as voice, M-Pesa, SMS and mobile data expanded by 13.8 per cent to Ksh177.8 billion.

Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

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