Earnings UpdateSafaricom’s 2020 Earnings Down 6.8 Pc to Kes 68.68 Billion

Safaricom's board has proposed a final dividend per share (DPS) of Kes 0.92 amounting to Kes 36.86 billion for approval at the next Annual General Meeting (AGM).”
Safaricom CEO Peter Ndegwa

Safaricom Plc, Kenya’s leading Telco has recorded a 6.8 percent decline in its 2020 net income to Kes 68.68 billion, owing to the impact of the ongoing coronavirus pandemic.

According to the results released on Thursday, service revenue closed at Kes 250.35 billion driven by double-digit growth in mobile data business, which grew by 11.5 percent year-on-year to Kes 44.79 billion.

M-PESA and Voice revenue declined marginally with M-PESA recording a 2.1 percent drop to Kes 82. 64 billion while voice dropped by 4.6 percent to register revenue of Kes 82.55 billion.

Safaricom’s Earnings before Interest and Tax declined 5.3 percent to Kes 96.16bn.

During the period under review, the firm’s free Cash Flow went down 8.2 percent to Kes 64.52 billion while messaging revenue declined by 11.7 percent to Kes 13.60 billion.

“We remained resilient in a disruptive year, demonstrating strong operational capacity, diligence and commitment in supporting the country, our customers and shareholders through this uncertain time. Our immediate focus in the year has been to ensure that network capacity, operations and financial services are prioritized to limit disruptions,” – Peter Ndegwa, Safaricom CEO.

“We remained resilient in a disruptive year, demonstrating strong operational capacity, diligence and commitment in supporting the country, our customers and shareholders through this uncertain time. Our immediate focus in the year has been to ensure that network capacity, operations and financial services are prioritized to limit disruptions,” he added.

Safaricom’s Growth

Mobile data revenue however increased by 11.5 percent year on year to Kes 44.79 billion.

At the same time, the total one-month active customer base increased by 9.9 percent to 31.45 million.

One month active M-PESA customers increased 13.6 percent to 28.31 million, while one month active mobile data customers increased 8.1 percent to 23.77 million.

“Whilst we anticipate facing more subdued operating climate in the short term as we recover from the impact of the pandemic, our business is well placed to cope with the challenges arising from the pandemic,” Ndegwa said.

“During this period, the Board declared for the first time, an interim dividend of Kes 0.45 per ordinary share held amounting to Kes 18.03 billion. The final dividend per share (DPS) of Kes 0.92 dividend per share amounting to Kes 36.86 billion has been proposed by the Board for approval at the next Annual General Meeting (AGM).”

 

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