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Safaricom profit jumps to Ksh63.4 billion

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Former Safaricom CEO Bob Collymore.
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Kenya’s largest telco by market share Safaricom has reported a 14.7% increase in net profit to Ksh63.4 billion for the financial year ended March 31,2019 up from the 55.4 billion reported in 2018..

The telco’s impressive performance was largely driven by revenue generated from M-Pesa which grew 19.2% to Ksh74.99 billion while service revenue grew by 7% to Ksh240 billion.

On the back of this performance, the company has announced that it will pay out a Ksh1.58 dividend to its shareholders amounting to Ksh24.8 billion.

“We are pleased with the strong results we have delivered for the year, building on our long track record of delivering relevant products and putting the customer first. We foresee continued growth in the future,” Chief Executive Bob Collymore said during the release of the results.

Mobile data revenue increased by 6.4% to Sh38.69 billion while messaging revenue declined by 1.3% to Sh17.50 billion.

It was also revealed that Ksh45 billion has been borrowed from Fuliza since the overdraft facility was launched in January.

Despite the company’s strong financial position, Chief Executive Bob Collymore’s succession hang heavy over the event after it was revealed earlier this week that he will be exiting the company to concentrate on his health.

Chairman Nicholas Ng’ang’a stayed clear of the succession talk choosing instead to focus on the results.

 

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