Safaricom Full Year 2015 Financial Results

(Last Updated On: May 7, 2015)

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Kenya’s largest telecommunication company Safaricom, recorded a 38% rise in net profit thanks to growth in non voice revenue and increased customer numbers.

Net profit stood at Ksh31.9bn while revenue grew by 13% to hit ksh163.4bn. Service revenue increased by 13% also to stand at Ksh156.2bn. Non voice revenue increased by 27% to hit Ksh68.8bn. The company has grown its free cashflow by 21% making it stand at Ksh27.5 billion and this has led to an increased dividend by 36% to make it stand at Ksh0.64 per share.

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Customer numbers grew by 8.3% to stand at 23.35 million. Voice revenue accounts for 54% of the revenue while non voice 42%. Device sales accounts for just 4%. Voice revenue stands at Ksh87.41bn, Mpesa revenue Ksh32.63bn, SMS Ksh15.63bn, mobile data Ksh14.82bn, fixed service Ksh3.13bn and other service revenue Ksh2.63bn.

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In terms of costs, direct costs went up by 9.1% to stand at 56.71bn. Capital expenditure on the network stood at Ksh34bn. These were mainly in the 2,010km of fiber connected to 1070 base stations, new MPesa platform and investment in 2G, 3G and 4G networks. Currently there are 236 4G sites in Mombasa and Nairobi.

Safaricom is planning to embark on increasing smartphone penetration. It also plans to connect 1000 commercial buildings to fiber internet and also 8000 homes.

BREAKDOWN:

1. VOICE – Revenue Ksh87.41bn

This experienced a 3.7% growth in revenue and an 8.3% growth in customer numbers. 37.8% of the customers regularly top-up through MPesa. ARPU declined by 5.7% to Ksh328

 

2. MPESA – Revenue Ksh32.63bn

MPesa experienced a 22.8% growth in revenue. 30 day active customers increased by 14% to 13.86m customers. Transaction value increased by 26% to Ksh4.18tn. Lipa Na Mpesa customers made payments of Ksh11.6bn of which Ksh2.8bn was merchants paying distributors. M-Shwari customer numbers grew to 5.8 million from 3 million with Ksh5.5bn in deposits and Ksh2.1bn in loans. NPL were just 2%. ARPU grew by 9.4% to stand at Ksh209.

 

3. SMS – Revenue Ksh15.63bn

There was an 8.2% growth in active 30 day SMS users to stand at 13.35million. The number of active SMS bundle users increased to 4 million which is a 33.8% increase. ARPU grew by 7.3% to hit Ksh59

 

4. Data (Mobile data and Fixed Service) – Revenue Ksh17.95bn

Revenue grew by 59.2% in mobile data while the number of 30 day active mobile data customers grew by 21.2% to 11.6 million. The number of 3G & 4G devices in the network stands at 4.4 million. Mobile data usage per customer grew by 37.9%. Fixed service revenue grew by 21.7% mainly due to a 22.8% increase in customer numbers to 8,624. ARPU in mobile data grew by 26.4% to stand at Ks110.