Safaricom Plc announced a 20.2% jump in net income in its half year results for the period ended September 30 during its financial report released on November 2.
The unaudited results place Safaricom’s net profit at Ksh31.5 billion, with earnings before income and taxes also jumping 18.8% to Ksh44.6 billion.
M-Pesa and mobile data were the leading factors behind revenue growth contributing nearly 95% of Safaricom’s revenue growth. The mobile money service revenue growth up 18.2% to Ksh35.5 billion and mobile data increasing to Ksh19.5 billion, a 10.8% bump.
Voice service grew 1.4% to Ksh48 billion, while messaging services declined by 1.2% to Ksh8.8 billion.
Safaricom CEO Bob Collymore said, “We achieved solid results driven by strong M-Pesa gains, further diversification of of our revenue mix to tap into new growth areas and investments in new revenue streams, which contributed to a double digit increase in earnings per share and free cash flow.”
The company, which is in its 18th year anniversary, also talked up its mobile tech market propositions that impact society through products such as M-Tiba (health), DigiFarm (agribusinesss), Shupavu291 (education) as well as the M-Pesa Academy Foundation and the e-commerce platform Masoko.
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Safaricom’s results come in a period where the giant telco has seen the return of its chief executive Bob Collymore from medical treatment in the UK amid industry players calling for the telco to be declared a dominant player.
The period has also seen Safaricom open new regional outlets, treat customers to the Maisha Ni M-Pesa Tu promotion, placed on the spotlight due to the SIM Swap scandal and come under pressure from competitors who have announced cheaper voice call services.
*Correction: This article has been updated to indicate the Safaricom un-audited half year financial results.
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