To actualise the growth opportunities in connectivity, content innovation, and service platforms, the firm is set to invest close to KES 38 billion in infrastructure expansion.
“In FY 2019 we look to drive long-term shareholder value by deploying next-generation network services, leveraging data analytics and segmentation, guided by our purpose of transforming lives to turn innovative ideas into realities,” said the Finance Director Sateesh Kamath.“Safaricom is well positioned to sustain growth in the portfolio and actively manage profitability with new disruptive initiatives and offerings in M- PESA, E-Commerce and Home and Enterprise solutions including the use of Internet of Things,” he adds.
Kamath during the release of the company’s FY18 results, he told investors that it had exceeded its earnings before interest, tax, depreciation, and amortization (EBITDA) guidance for its year to the end of March 2018, posting an EBIT of KES 79.3 billion higher than the initial guidance of KES 71-75 billion.
Total revenue rose 9.8 percent y/y to KES 234Bn against KES 237Bn in-house estimates. This was supported by increased usage across all revenue segments (voice 2.3%, SMS 6.2%, mobile data 24.0%, fixed data 27.3% and M-PESA 14.2%).
“M-PESA and data continue anchoring growth of the business with a combined contribution of 47.2% to revenue from 30.9% in FY15,” noted Genghis Capital Analysts in an Investor Brief.
“Mobile data contributed to 3.5ppts or 35% of the service revenue growth for the year and continues to be a strong pillar for future,” noted Kamath.
Bob Collymore, the Safaricom CEO via video link reiterated “We sharpened our focus on delivering relevant products and services, organisational effectiveness and putting our customers first. We continued our efforts to diversify the business to support revenue generated by voice and SMS.”
Further, integrating their growth strategy to the UN’s 17 Sustainable Development Goals (SDGs) has been deliberate, “It has to be part of what we do every day in order to succeed. We do it because it is the right thing to do,” says Joe Ogutu.
All are founded on three pillars: Putting the customer first, delivering relevant products and optimizing operational excellence.