Safaricom Half year 2014 – 2015 Financial Results

(Last Updated On: November 5, 2014)

safaricom

Leading telecommunication company Safaricom has once again produced massive results for the first 6 months of its 2013-2014 financial year. The company’s total revenue was up 15% to stand at Ksh79.3 billion. Net income stood at 31% growth to 14.7 billion. Customer numbers grew to 21..82 million. Voice revenue made over 50% of the revenues then Mpesa, data and SMS respectively.Non-voice revenue grew by30% to make up 35% of the revenue.

BREAKDOWN

Voice:

Voice registered 6.4% growth to stand at Ksh43.67 billion with 21.85 million active customers. 36.6% of airtime top-ups were directly through Mpesa and there was a 29.3% increase in emergency top ups.

ARPU on voice was down 1.2% to stand at Ksh343 per month

 

M-Pesa:

This experienced 24.7% growth in revenue to stand at Ksh15.59 billion driven by increase in 30 day active customers. Ksh121 billion is sent averagely per month

Person to person: Ksh92.8bn per month (20% growth)

Person to business: Ksh14.6bn per month (64% growth)

Business to person: Ksh13.9bn per month (83% growth)

Mshwari has 4.5 million active customers, 2.4 million 30 day active customers, 4.1bn in deposits and Ksh1.6bn on loans. None performing loans stood at 2.2%.

ARPU in Mpesa stood at Ksh207 in a single month

 

SMS:

SMS registered 12% growth in revenue to stand at Ksh7.17 billion. The number of 30 day active customers was 12.37. ARPU here was Ksh55 per month

 

Data:

This is the product with the highest growth. Revenues grew 52.9% to stand at Ksh7.99 billion while the number of data users is 10.51 million. There was a 24.3% increase in mobile data usage per customer while average price per MB declined by 3.7%. Fixed service revenue has grown by 22.1% with 7,499 customers. ARPU was up 18.4% to stand at Ksh103 per month.

 

Other highlights:

Smartphone growth in the network stood at around 3.1 million. Increase in smartphone usage is around 104%. When a user migrates to a smartphone the ARPU goes up by an average of 182%.

Around Ksh12.37 billion will be invested in fibre optic and modernization of 2G and 3G sites. Already 1500km of fibre is laid and another 1650km is to be laid down. Safaricom also plans to launch 4G/LTE internet within the next month and expects it be in 15 major towns in the next 12 months. 184 LTE sites will be deployed in Nairobi and 50 in Mombasa.

Safaricom is focused on growing the youth market share. It acquires an average of 463,000 new subscribers from this segment every year.