Kenya’s Safaricom on Thursday said its revenue increased by 12.9 per cent to Ksh 298.08 billion in the year to March from Ksh 264.03 billion a year earlier.
It said its net profit rose by 5.4 per cent to Ksh 72.35 billion excluding Ethiopia but declined by 1.7 per cent to Ksh 67.50 billion at the group level including the impact of the Ksh4.66 billion financing costs for the Ethiopia business.
“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,” Peter Ndegwa, Chief Executive Officer of Safaricom PLC said during the announcement of the results.
“We will continue to be a sustainable purpose-led business as we transition to become a technology company by 2025.”
The company’s Service Revenue by 12.3 per cent to Ksh 281.11 Billion and Earnings Before Interest and Tax (EBIT) by 13.5 per cent to Ksh109.13 Billion.
Voice service revenue grew by 0.8 per cent to Ksh 83.21 Billion; mobile data revenue grew by 8.1 per cent to Ksh 48.44 Billion, while M-PESA revenue grew by 30.3 per cent to Ksh 107.69 Billion.
Analysts on average had expected its earnings to be impacted by the Ethiopian venture.
“We believe that the Ethiopian venture will have a material impact on operational costs and Capital Expenditure FY22 and will weigh down overall business profitability and we have therefore included earnings with and without the venture,” Sterling Capital Analysts had said in their Safaricom FY22 Earnings Expectations & Valuation Update.
Retains dividend payout
The Safaricom board has recommended a final dividend of KSh0.75 per share amounting to KSh30.04 billion.
“At the AGM to be held on 29 July 2022, a final dividend in respect of the year ended March 31, 2022, of KSh0.75 per ordinary Share amounting to a total of Sh30.04 billion is to be proposed for approval. This brings the total dividend for the year to KSh55.69 billion,” said Safaricom CEO Peter Ndegwa.