STOCKS

Safaricom Shareholders Sh48 Billion Richer After Dividend Payout

BILL YAURAJul 28, 20231 Mins read2k

Safaricom CEO Peter Ndegwa said this past year, the business navigated tough operating conditions, including increased regulatory scrutiny and changes in taxation policies. (Photo: Bloomberg.com)

Safaricom Dividend: Shareholders have approved a final dividend of Ksh0.62 per ordinary share with the dividend payout amounting to Ksh24.84 billion. In February 2023, the Board approved a payment of an interim dividend of Ksh0.58 per ordinary share, amounting to a total of Ksh23.24 billion for shareholders.

This brings the total dividend for the year to Ksh48.08 billion, which represents Ksh1.20 per share in respect of the year ended 31^st March 2023. The dividend will be payable on or about 31^st August 2023 to the shareholders on the Register of Members as at close of business 28^th July 2023.

Safaricom CEO Peter Ndegwa said this past year, the business navigated tough operating conditions, including increased regulatory scrutiny, changes in taxation policies, political uncertainty surrounding the elections, and a significant economic slowdown compounded by rising inflation, currency depreciation, drought, and famine.

The revised Mobile Termination Rate (MTR) and increased excise duty on SIM cards and mobile phones added further pressure to the business. However, despite these obstacles, Safaricom exhibited resilience during the year to sustain an overall solid performance.

“Our performance in the year demonstrated the strong commitment to delivering value for our stakeholders including employees, customers, shareholders, and the community,” said Mr. Ndegwa, Safaricom CEO.

Safaricom has posted a 22.2% decline in net profit for the full year ended March 2023, the third consecutive drop in earnings on heavy capital investments in Ethiopia. Profitability stood at Ksh52.48 billion, down from Sh67.49 billion posted in the previous period.

Fall in profits was attributed to huge capital expenditure on the Ethiopian subsidiary. Safaricom rolled out operations in Ethiopia last year ago and projects that the unit will break even after four years of operations. The unit posted a net loss of Ksh21.7 billion, while Kenya posted Ksh74.5 billion profit buoyed by strong growth in mobile data and mobile money.