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Safaricom has today announced a 1.7% drop in profit after tax for the year ended March 31st 2022. The telco announced a profit of Ksh 67.496 billion for the period under review, down from Ksh 68.676 billion recorded in the previous year.
Safaricom attributes the dip in profits to the Ksh 4.66 billion it spent in financing the Ethiopia business which the telco is set to launch later in the years.
Safaricom’s Service Revenue increased by 12.3% to KES 281.11 Billion and Earnings Before Interest and Tax (EBIT) by 13.5% to KES 109.13 Billion.
Voice service revenue grew by 0.8% to KES 83.21 Billion; mobile data revenue grew by 8.1% to KES 48.44 Billion, while M-PESA revenue grew by 30.3% to KES 107.69 Billion.
M-PESA, which marked its 15th anniversary this year, hit the 30 million active customer mark in Kenya. A significant sign of M-PESA’s progress was the 63.4% growth of Lipa na M-PESA merchants to just below 500,000.
M-PESA now has over 3.2 million businesses accepting payments under its portfolio, while the M-PESA business app has about 100,000 active businesses.
Mr Ndegwa said: “Our strong growth and achievements this financial year are due to the strong strategy execution, a dedicated staff force, and the business commitment to prioritize the needs of our customers. We will continue to be a sustainable purpose-led business as we transition to become a technology company by 2025.”
Safaricom invested over KES 39.34 Billion in Capital Expenditure (CAPEX) in Kenya to maintain and expand the network and ensure Kenyans enjoy reliable network coverage across the country and uninterrupted data services.
Safaricom Plc also invested KES 10.44 Billion in Ethiopia as we fast track our network rollout plans. This brings the total CAPEX spend for the year under review to KES 49.78 Billion a 42.4% increase from last year.
In the Financial Year, Safaricom launched intuitive and innovative new products that directly address specific customer pain points. Such as Nyoosha Shillingi, the mobile data new pricing plan that is giving more value to our customers at no extra cost.
Halal Pesa the first Shari’ah-compliant based digital financing product in partnership with the Gulf African Bank powered by M-PESA. Additional products in the pipeline include Visa virtual card by M-PESA GlobalPay to support international online payments and subject to regulatory approvals, the M-PESA junior product for children who may have access to mobile phones.
With the new business strategy and the renewed focus on the customer, Safaricom, in the new Financial Year, plans to accelerate new growth areas, delivering superior customer experience in order to be a purpose-led Technology Company by the end of 2025.
“The Board is encouraged by the recovery in the business from the pandemic in the past year. Two years into Safaricom’s new strategy, the Board continues to support the management in the business plans recording strong achievements in this financial year,” said Michael Joseph, Chairman, Safaricom Board of Directors.
