Par Value: 0.05/-
Closing Price: 29.50
Total Shares Issued: 40065428000.00
Market Capitalization: 1,181,930,126,000
Safaricom PLC FY 2019/ 2020 Results for the year ended 31st March 2020 vs. 31st March 2019
FY Voice revenue 94.45b vs. 95.80b -1.41%
FY Mpesa Revenue 84.44b vs. 74.99b +12.60%
FY Messaging Revenue 17.19b vs. 19.61b -12.34%
FY Mobile data revenue 40.67b vs. 36.27b +12.13%
FY Fixed service revenue 8.97b vs. 8.10b +10.74%
FY Other service revenue 5.50b vs. 5.00b +10.00%
FY Service revenue 251.22bvs.239.77b +4.78%
FY Handset revenue and other revenue 10.48bvs.9.45b +10.90%
FY Other income 0.28bvs.0.46b -39.13%
FY Total revenue 262.56bvs.250.28b +4.91%
FY Direct costs [74.70b] vs. [71.80b] +4.04%
FY Contribution margin 185.61b vs. 177.89b +4.34%
FY Operating costs [47.56b] vs. [53.59b] -11.25%
FY Operating costs % total revenue 18.2% vs. 21.5% -3.3%
FY EBITDA 138.04b vs. 124.30b +11.05%
FY EBITDA Margin 52.7% vs. 49.8% +2.9%
FY Depreciation and amortization [36.55b] vs. [35.33b] +3.45%
FY EBIT 101.49b vs. 88.97b +14.07%
FY Net finance income 0.92b vs. 2.24b -28.93%
FY Share of profit of Joint Venture (Mpesa Global Services) 3.30b vs. 0.0
FY Profit before income tax 105.77b vs. 91.22b +15.95%
FY Profit after tax 73.66b vs. 62.49b +17.87%
EPS 1.84 vs. 1.56 +17.95%
Shareholders Funds 144.12b vs. 144.35b -0.16%
Cash and cash equivalents 26.76b vs. 20.03b +33.60%
Total Net Cash 18.76b vs. 16.00b +17.25%
Free cash flow 70.27b vs. 63.11b +11.35%
Normal dividend per share 1.40 vs. 1.25 +12.00%
MPESA grew 12.6% YoY in the period. On an underlying basis, excluding the impact of betting and our COVID19 response, MPESA grew 17.2%. This growth was driven by savings and lending and P2P which make up two thirds of the total growth.
However, we have seen a slowdown in the growth rates across withdrawals and payments, partly driven by a general economic slowdown, and this is likely to get worse as we face the coronavirus pandemic in FY21.
While we are facing some short term headwinds, there is still a lot of opportunity to grow and we are excited about MPESAs future.
We are pleased to report that on average our customers are now using more than 1GB per month and that mobile data achieved double digit revenue growth of 12.1% for the year.
Mobile data now accounts for 16.2% of Service Revenue and grew 21.1% 2H20. Growth in mobile data was driven by increased smartphone penetration and usage and a 28.3% reduction in effective rate per MB.
The launch of For You structure in October 2019 enhanced affordability and gave customers more control and worry free experience when using mobile data.
In the period, fixed service revenue registered a growth of 10.7% and contributes 3.6% of total service revenue in the period.
Fixed revenue is driven by increased activity and penetration for FTTH.
We sustained strong investment in FY20. Our capital additions amounted to KShs 36.10bn for the period.
Capex intensity has reduced 1.1ppts YoY to 13.8% as we continue to focus on enhancing monetization and cost savings opportunities upon deployment.
The Board remains committed to investing in the business and continuing our strong record for paying progressive dividends each year.
The proposed dividend for FY20 is KShs 56.09bn. The proposed dividend per share (DPS) of KShs 1.40 has been computed at 80% of the profit and total comprehensive income for the year excluding the one off exceptional item of share of profit of joint venture of KShs 3.3bn, divided by number of issued share capital on IFRS 15/16 basis.
Summary and outlook
Peter Ndegwa, Safaricom PLC CEO commented:
I have joined Safaricom at a time when humanity is facing its biggest challenge in modern history. The past one month of my time in Safaricom has been spent interacting with both staff and customers and I am pleased to say that I am filled with admiration for the resilience our staff are showing, by ensuring that in unprecedented times, our customers continue to interact with our products and services with ease.
Never has our purpose of transforming lives been more present and relevant. We continue to implement measures to cushion customers and Kenyans at large from the negative impact of the pandemic. Our current support which extends to 30 June 2020, is valued at KShs 6.5bn, this includes:
Zero rating of the following transactions until 30 June 2020 to reduce the risk of handling cash, the transactions include:
Person to Person and Lipa na MPESA transactions below KShs 1,000
Bank to MPESA wallet and MPESA wallet to bank transactions
Zero rated paybill tills for government hospitals and dispensaries.
Daily MPESA transaction limits increased to KShs 150,000 to support SMEs and daily MPESA wallet limit increased to KShs 300,000 to further
support reduction of risk in handling cash.
Double bandwidth offered on our fiber connections to home for 90 days, giving customers an opportunity to work and learn from home.
Provision of concessional rates for data access to specific educational content for various universities and other learning institutions.
Safaricom Foundation donation of thermal cameras worth KShs 10mn to the Ministry of Health installed in various entry points to our country, as
well as a KShs 200mn food donation.
Safaricom has further supported the government in the establishment and operation of a 24 7 COVID 19 Information Centre, leveraging the
capabilities of our Customer Contact Centre. We are also hosting over 300 doctors to support the frontline staff in educating, informing and managing
the spread of COVID 19.
Customers are allowed to use Bonga points at any outlets with Lipa na MPESA tills to buy food and basic necessities.
Over KShs 331mn set aside to help in education, health and empowerement to drive community support.
It is important to point out that our most critical support to the country remains ensuring network stability to support the usage in MPESA, voice, SMS and data. We have the responsibility to keep the country connected.
Safaricom has always been the pioneer in many ground breaking innovations, and I am committed to continuing this path with a focus to tap into the vast opportunity in the Agriculture, Health, Education, and Public sectors. Leveraging the power or partnerships, and the digital platforms we operate, I aim to drive affordable and innovative products in mobile communication, financial services and enterprise solutions whilst maintaining leadership in the
best network quality.
I have a clear ambition to strengthen our differentiation and to lead the company in capturing the continued opportunities of digital.
Due to the uncertainty emanating from the COVID 19 pandemic, many parameters that would normally be factored in for a prudent guidance are unclear, and changing by the day. As a result, we have decided to postpone giving guidance until Q2 of FY21when we hope visibility on the situation improves. Whilst things will remain challenging in the short term, we believe we are well placed to weather this storm. We will leverage the strength of our balance sheet and our resilient business model to ensure we continue to innovate and generate efficiencies for our customers and shareholders alike thus safeguarding our performance for the future.
Strong double digit growth.
They are surely aligned in some respects to the new COVID Economy via Internet and Mobile Data and MPESA although it would be interesting to see high frequency MPESA data especially around velocity.
It is a Mobile Century at the end of the day
Safaricom PLC HY 2020 results for the period ended 30th September 2019 vs. 30th September 2018
HY Voice revenue 46.87b vs. 47.53b -1.4%
HY Mpesa Revenue 41.97b vs. 35.52b +18.2%
HY SMS Revenue 8.60b vs. 9.67b -11.0%
HY Mobile data revenue 19.78b vs. 19.01b +4.0%
HY Fixed service revenue 4.55b vs. 3.84b +18.4%
HY Other service revenue 2.55b vs. 2.49b +2.4%
HY Service revenue 124.32b vs. 118.05b +5.3%
HY Handset revenue and other revenue 5.16b vs. 4.31b +19.7%
HY Construction revenue 0.35b vs. 0.30b +15.2%
HY Other income 0.07b vs. 0.17b -58.8%
HY Total revenue 129.93b vs. 122.83b +5.8%
HY Direct costs [37.48b] vs. [34.96b] +7.2%
HY Contribution margin 92.07b vs. 87.57b +5.1%
HY Contribution margin % 71.1% vs. 71.5% -0.4%
HY Operating costs [25.59b] vs. [25.82b] -0.9%
HY EBITDA 66.49b vs. 61.79b +7.6%
HY EBITDA margin% 51.3% vs. 50.4% +0.9%
HY Depreciation and amortization [16.67b] vs. [17.56b] -5.1%
HY EBIT 49.82b vs. 44.22b +12.7%
HY Net financing FX and fair value losses 1.85b vs. 1.41b +31.2%
HY Earnings before taxation 51.71b vs. 45.63b +13.3%
HY Net income 35.65b vs. 31.50b +14.4%
EPS 0.89 vs. 0.78 +14.4%
HY Free cash flow 37.33b vs. 38.42b -2.8%
Full Year Guidance Maintained
Service revenue growth of 5.3% to KShs 124.32bn.
Voice service (incoming and outgoing) revenue declined 1.4% to KShs 46.87bn.
MPESA revenue grew by 18.2% to KShs 41.97bn.
Mobile data revenue increased by 4.0% to KShs 19.78bn.
Messaging revenue declined by 11.0% to KShs 8.60bn.
Fixed service revenue increased by 18.4% to KShs 4.55bn.
One month active overall customers increased by 8.9% to 27.45mn.
One month active MPESA customers increased 12.4% to 23.61mn.
One month active mobile data customers increased 14.8% to 20.19mn.
Strong financial performance
12.7% growth in EBIT or Profit before Interest and Tax to KShs 49.82bn with an
EBIT margin of 38.5%, up 2.4ppts YoY.
Net Income or Profit after Tax increased by 14.4% to KShs 35.65bn.
Free Cash Flow declined 2.8% to KShs 37.33bn.
Revenue growth for the half year to September 2019 was 5.3% driven by robust performance across MPESA and fixed data and strong customer growth offsetting decline in the traditional revenue streams and soft performance on mobile data.
Voice and messaging
Voice declined 1.4% while messaging declined 11.0%. This decline was partly driven by competitive pressures and migration to newer technologies and partly by the impact of corrective actions taken last year to make it easier for our customers to manage their premium rate subscriptions and opt out of them where no longer needed. Voice and messaging are now 44.6% of service revenue.
MPESA has sustained robust growth in the period recording a YoY growth of 18.2% despite the impact of the slow-down in the gaming industry. The growth was driven by 12.4% YoY increase in 30 day active MPESA customers to 23.61 million and a 7.8% YoY growth in monthly usage per customer to 13 chargeable transactions per month. The company added 2.6 million active MPESA customers with MPESA now accounting for 33.8% of service revenue further accelerating displacement of traditional voice and messaging services. Excluding gaming revenue grew 20.9% YoY and chargeable transactions per customer per month grew 17.5%.
Mobile data registered a 4.0% growth in revenue as we continue to carry the effect of corrective actions taken in prior year repositioning data bundles and absorbing the excise duty increase. Mobile data now accounts for 15.9% of service revenue and registered an impressive 14.6% growth on the revenue earned in the second half of last year. Growth in mobile data revenue is expected to return to double digits in the second half of this year driven by increased penetration and usage.
Data is the focus for the future for the company and has grown by 14.8% to 20.2m customers and 919MBs usage per customer. #SafaricomHYResults @RichTvAfrica
@sateeshkamath calculated that over the last 4/5 years @SafaricomPLC invested more in Kenya than the competition has across the entire African continent. @KuiKinyanjui
Impressive half year performance @SafaricomPLC @michaelj2 @sateeshkamath #SafaricomHYResults
M PESA remains the Jewel in the Crown.
Continue to drive Mobile data Usage which is precisely the correct response.
+14.4% EPS in a soft Economy is actually stellar.
Safaricom FY 2019 Results for the year ended 31st March 2019 vs. 31st March 2018
FY Voice revenue 95.94b vs. 95.64b +0.3%
FY Mpesa Revenue 74.99b vs. 62.91b +19.2%
FY SMS Revenue 17.50b vs. 17.72b -1.3%
FY Mobile data revenue 38.69b vs. 36.36b +6.4%
FY Fixed service revenue 8.19b vs. 6.67b +22.7%
FY Other service revenue 5.00b vs. 5.24b -4.5%
FY Service revenue 240.30b vs. 224.54b +7.0%
FY Handset revenue and other revenue 9.58b vs. 8.98b +6.7%
FY Other income 0.46b vs. 0.51b -8.9%
FY Total revenue 250.96b vs. 234.22b +7.1%
FY Direct costs [71.82b] vs. [70.55b] +1.8%
FY Contribution margin 178.53b vs. 163.47b +9.2%
FY Operating costs [53.65b] vs. [50.61b] +5.8%
FY Forex loss on trading activities 0.06b vs. [0.03b] +300.0%
FY EBITDA 124.94b vs. 112.83b +10.7%
FY Depreciation and amortization [35.33b] vs. [33.56b] +5.3%
FY EBIT 89.61b vs. 79.27b +13.1%
FY Net financing, FX and fair value gains 2.24b vs. 0.63b +255.6%
FY Earnings before taxation 89.61b vs. 79.27b +13.1%
FY EBIT Margin 35.8% vs. 33.9% +1.9%
FY Net income 63.40b vs. 55.29b +14.7%
EPS 1.58 vs. 1.38 +14.7%
Shareholders Funds 143.24b vs. 123.91b +15.6%
Cash and cash equivalents 20.03b vs. 9.50b +110.842%
Total Net Cash 16.00b vs. 5.46b +193.040%
Free cash flow 63.11b vs. 55.39b +13.938%
Normal dividend per share 1.25 vs. 1.10 +13.636%
Special dividend per share 0.62
Full Year Guidance Achieved
Service revenue growth of 7% to KShs 240.30bn.
Voice service (incoming and outgoing) revenue grew by 0.3% to KShs 95.94bn.
MPESA revenue grew by 19.2% to KShs 74.99bn.
Mobile data revenue increased by 6.4% to KShs 38.69bn.
Messaging revenue declined by 1.3% to KShs 17.50bn.
Fixed service revenue increased by 22.7% to KShs 8.19bn.
Total customer base increased by 7.7% to 31.8m.
30 day active MPESA customers increased 10.2% to 22.6m.
30 day active mobile data customers increased 6.6% to 18.8m.
Strong financial performance
13.1% growth in EBIT (Earnings before Interest) to KShs 89.61bn with an EBIT margin of 35.8%, up 1.9ppts YoY.
Net Income increased by 14.7% to KShs 63.40bn.
Free Cash Flow up 13.9% to KShs 63.11bn.
Bob Collymore, Safaricom PLC CEO commented:
In a year where macro issues weighed on customer choice, we continued to generate positive momentum. We achieved this by focusing on the customer, investing in the quality of our service, the performance of our network and creating differentiated customer experiences. Our actions were guided by our purpose of transforming lives.
Our top priority for FY19 was focusing on the customer and I am pleased to advise that we have witnessed improved customer sentiment, through measures such as NPS and brand consideration. This translated into an accelerated growth in customers from 400k in the first half of the year, to 1.9m in the second half of the year.
We increased the use of data analytics to provide predictive, proactive and personalised offers to our customers, driving down effective prices of our offering. This impact can be clearly seen within mobile data and voice with the average rate per megabyte reducing 42% YoY, and the average rate per minute reducing 10%.
We sustained our level of investment in FY19, with capital expenditure totalling KShs 37.25bn for the year. This enabled us to expand our network to ensure the widest reach to our customer base. We increased our sites by 9% year on year, and our 3G and 4G coverage to 93% and 57% respectively, and we have plans to accelerate our 4G roll out this coming year to cover every town in the country, thus cementing ourselves as Kenyas best 4G network.
We extended our fibre footprint to 6,700kms, up from 5,000kms last year. We also invested in network quality including rolling out a capacity upgrade on the MPESA platform to support 1200 TPS (transactions per second) up from 900 TPS and the deployment of a 400G network link.
Innovation and partnerships continue to define our approach to revenue diversification and growth. This year we made good progress by securing key partnerships for our MPESA business including AliExpress to drive our payments business, Western Union to drive remittances and Fuliza, our overdraft product, to drive lending.
We continue to accelerate our digital transformation and agile agenda. Our continued focus on digital engagement with customers enabled us to launch Zuri, an artificial intelligence (AI) Chatbot assistant, to meet our customer requests through automated, digital support. Zuri enables our mobile data users to perform a wide range of tasks saving on costs and driving efficiencies.
Looking ahead, the business will sustain its momentum of investing in the quality of our service and diversification of our revenue portfolio to ensure sustained returns to shareholders. We are excited about the future of MPESA expansion, Home including surveillance and content, Ecommerce, Agribusiness and Enterprise solutions including IoT (Internet of Things).
We remain committed to our purpose of transforming lives. Our latest True Value Report indicates that Safaricoms value to the Kenyan society increased by 12% to KShs 543 billion. This was 10 times more than the financial profit the company made during the same period, and we contributed a total of 6.5% to the countrys Gross Domestic Product. We continue to leverage in the power of mobile technology to deliver on shared value propositions that disrupt inefficiencies and impact lives positively in health, agriculture and education sectors, such as MTiba, DigiFarm, Shupavu and MSalama.
Service Revenue growth of 7% for the year was driven by strong M PESA performance, contributing roughly three quarters of the service revenue growth. Mobile data and fixed data combined contributed roughly one quarter of the growth.
Voice and messaging
Voice grew 0.3% and messaging declined 1.3%, driven by competitive pressures and migration to newer technologies. Voice and messaging are now 47.2% of service revenue.
MPESA grew 19.2% for the year. The growth in MPESA has been driven by an increased number of users, higher velocity of funds within the ecosystem, and adoption of new use cases. In the period, we added 2.1 million active MPESA customers. MPESA now accounts for 31.2% of service revenue, further accelerating displacement of traditional voice and messaging services.
Mobile data revenue increased by KShs 2.33bn on an absolute basis, and continued to witness a slowdown in the growth rate from the first half of the year, growing at 6.4% for the full year. The slow down in growth reflects both competitive conditions in the market and increased taxation that was absorbed for in bundle customers. Mobile data is now 16.1% of service revenue.
The business continues to extend the reach of fibre broadband which is now available to more than 100k homes connected. Safaricom has now passed nearly 300k homes and has more than two thousand fibre ready buildings. Fixed data now contributes 3.4% to total service revenue and grew at 22.7% year on year in the period.
We sustained strong investments in FY19. Our capital additions of KShs 37.25bn, expressed as a percentage of our revenues remained in the mid-teens, driven by our focus on enhancing monetization and cost savings opportunities upon deployment.
During the 2019 financial year, the Group adopted IFRS15 accounting standard, which has been reported alongside our results in FY19 on an IAS18 basis.
The board remains committed to investing in the business and continuing our strong record for paying progressive dividends each year. The proposed dividend for FY19 is KShs 50.08bn, an increase of 13.6% year on year. Given the strong position of the balance sheet, we are also happy to propose a special dividend for this year of KShs 24.84bn.
Summary and outlook
We are pleased with the strong results we have delivered for the year, building on our long track record of consistent delivery, protecting shareholder wealth and putting the customer first, and we foresee continued growth in the future
Our financial outlook for 2020 reflects the adoption of the IFRS 15 and IFRS 16 accounting standards guidance for EBIT moving from KShs 89bn to KShs 93 97bn, with Capex remaining within the KShs 36 38bn range.
SafaricomFYResults @SafaricomPLC Presentation
Not bad financial performance with 7% top line growth and 14.7% increase in net profits. The dividend payout is not too shabby either @bobcollymore
@SafaricomPLC FY 2019 proposed special dividend 0.62 @RichEconomics
Service revenue +7.0% y/y EBIT +13.1% y/yEPS +14.7% y/y Free cashflow 13.9% y/y #SafaricomFYResults @RichEconomics
We added 2.3 million customers this year to the Safaricom family, a 58% increase compared to the 1.4 million added the previous year. SafaricomFYResults @SafaricomPLC
.@bobcollymore we launched Fuliza: the worlds first contextual mobile money overdraft facility @SafaricomPLC
@sateeshkamath MPESA now accounts for 31.2% of service revenue. This represents an increase of nearly 8ppts from just three years ago, thus reconfirming the resilience in our business model vis a vis a traditional telco. SafaricomFYResults @SafaricomPLC
.@sateeshkamath revenue growth for the year was driven by MPESA, growing at 19.2% year on year, and, accounting for 75% of the growth for the year. SafaricomFYResults
By making it easier to send and receive money, MPesa is transforming the daily lives of people in Kenya @BillGates
05 NOV 2018 :: Mpesa revenue surged +18.2% to register 35.52b and Lipa Na Mpesa spiked close to 50% and looks like its on the cusp of a hockey stick like breakout.
05 NOV 2018 :: Safaricom have tweaked the Mpesa ecosystem with good effect. They have made the Mpesa garden richer and have increased retention and circulation in the ecosystem. This is a very big deal.
Safaricom have tweaked the Mpesa ecosystem with good effect. They have made the Mpesa garden richer [the average user is transacting 12 times a month] and have increased retention and circulation in the ecosystem. This is a very big deal.
.@SafaricomPLC announces final dividend of 1.25/ per share and 0.62/ per share special dividend as a thank you to shareholders. SafaricomFYResults @RichEconomics/
Our policy is not going to be driven by @realDonaldTrump says @bobcollymore re @SafaricomPLC relationship with @Huawei
The Dividend Special Dividend will keep this share sweet.
MPESA is a Stand Out.
Continue to tilt data prices lower in order to juice consumption.
Safaricom HY results for the period ended 30th September 2018 vs. 30th September 2017
HY Voice revenue 48.03b vs. 47.35b +1.4%
HY Mpesa Revenue 35.52b vs. 30.05b +18.2%
HY SMS Revenue 8.81b vs. 8.92b -1.2%
HY Mobile data revenue 19.45b vs. 17.55b +10.8%
HY Fixed service revenue 3.91b vs. 3.23b +21.0%
HY Other service revenue 2.49b vs. 2.63b -5.35
HY Service revenue 118.21b vs. 109.73b +7.7%
HY Handset revenue and other revenue 4.33b vs. 4.49b -3.5%
HY Total revenue 122.84b vs. 114.43b +7.4%
HY Other income 0.17b vs. 0.32b -47.8%
HY Direct costs [34.81b] vs. [36.07b] -3.5%
HY Contribution margin 87.90b vs. 78.47b +12.0%
HY Operating costs [25.82b] vs. [24.13b] +7.0%
HY EBITDA 62.12b vs. 54.27b +14.5%
HY Depreciation and amortization [17.56b] vs. [16.74b] +4.9%
HY EBIT 44.56b vs. 37.53b +18.7%
HY Net financing, FX and fair value losses 1.41b vs. 0.28b
HY Profit before taxation 45.96b vs. 37.82b +21.5%
HY Net income 31.50b vs. 26.20b +20.2%
EPS 0.79 vs. 0.65 +20.2%
HY Free cash flow 38.50b vs. 32.40b +18.8%
.@SafaricomPLC Key Financials @NSE_PLC @sateeshkamath
MPesa Revenue @SafaricomPLC #SafaricomHYResults @NSE_PLC
PM Abiy understands the potential of mobile payments. It will happen in its own time. We hope to put a tick in the box at the full-year results.#SafaricomHYResults
Mobile Usage in MB per user 639.8 versus 382.4 #SafaricomHYResults
We can get a SIM card to places @CocaCola cant says @bobcollymore @SafaricomPLC #SafaricomHYResults
Im in touch with the team every day. Safaricom is blessed in having one of the best management team in Kenya. @bobcollymore #SafaricomHYResults
Masoko we want to connect the Water Melon Farmer in Turkana to the Buyer in Eldoret says @bobcollymore #SafaricomHYResults we want to use our MPESA Agents and Dealers for click and collect
.@SafaricomPLC We are still seeing positive growth in Voice @bobcollymore
These were muscular against a volatile Economic and Regulatory backdrop.
You cannot argue with an H1 EPS Expansion of +20.2%
These results witnessed a startling dash in Mobile Data look closely at Mobile Usage in MB per user 639.8 versus 382.4 cut prices and surged usage
I liked what I heard about the regional opportunity.
I also liked The MPESA story which is increasingly become a closed garden
Safaricom FY Results for the year ended 31st March 2018 vs. 31st March 2017
FY Voice revenue 95.64b vs. 93.46b +2.333%
FY Mpesa Revenue 62.91b vs. 55.08b +14.216%
FY SMS Revenue 17.72b vs. 16.68b +6.235%
FY Mobile data revenue 36.36b vs. 29.33b +23.969%
FY Fixed service revenue 6.67b vs. 5.24b +27.290%
FY Other service revenue 5.24b vs. 4.32b +21.296%
FY Service revenue 224.54b vs. 204.11b +10.009%
FY Handset revenue and other revenue 8.98b vs. 8.70b +3.218%
FY Total revenue 233.72b vs. 212.89b +9.784%
FY Other income 0.50b vs. 2.51b -80.080%
FY Direct costs [70.55b] vs. [66.78b] +5.645%
FY Contribution margin 163.47b vs. 148.54b +10.051%
FY Operating costs [50.61b] vs. [44.92b] +12.667%
FY EBITDA 112.83b vs. 103.61b +8.899%
FY Depreciation and amortization [33.56b] vs. [33.23b] +0.993%
FY EBIT 79.27b vs. 70.38b +12.631%
FY Net financing and FX losses 0.63b vs. 0.23b +173.913%
FY Earnings before taxation 79.71b vs. 70.63b +13.139%
FY Net income 55.29b vs. 48.44b +14.141%
EPS 1.38 vs. 1.21 +14.050%
Capital Employed 123.91b vs. 107.49b +15.276%
Cash and cash equivalents 9.50b vs. 5.96b +59.396%
Total Net Cash 5.46b vs. [10.58b] +151.607%
Free cash flow 55.39b vs. 43.51b +27.304%
Key Highlights for the year ended 31st March 2018
Customer numbers 29.57m +5.1%
Mobile Data Customers 17.67m +6.2%
MPesa Customers 20.55m +8.0%
Service revenue 224.54b +10.00%
Voice Service Revenue 95.64b +2.3%
SMS Revenue 17.72b +6.2%
Mobile Data Revenue +36.36b +24%
Fixed Service revenue 6.67b +27.3%
MPESA Revenue 62.91b +14.2%
Non Voice service revenue 57.4% of total service revenues
EBITDA 112.83B +8.9% [excluding a oneoff adjustment growth was 12.5%]
Net Income +14.1% 55.29b
Full Year Dividend 1.10 +13.4%
Free Cash Flow 55.39b versus 43.51b +27.3%
Strong Earnings, Look at MPESA which made considerably more than any Bank.
Mobile Data a Stand Out.
Voice still posting growth [demographic surge refers]
This is a rocksolid Franchise and its morphing into Digital Company.
And do not forget tis was against the backdrop of an economy tat grew its weakest for 6 years.
Mpesa has been a growth engine. Whenever theres a cash transaction, we see an opportunity. Transaction value in 2017 double #SafaricomFYResults @sateeshkamath
Mpesa has been a growth engine. Whenever theres a cash transaction, we see an opportunity. Transaction value in 2017 doubled. Were building the ecosystem to monetise tomorrow. #SafaricomFYResults @sateeshkamath
.@sateeshkamath Data usage per subscriber has grown by 56% YoY to 421MB, sustaining a 4 Year CAGR for data usage is 61%. #SafaricomFYResults @safaricomplc
Data usage per customer grew from 269 MB per customer to 421 MB, with 91.9% of usage being through data bundles #SafaricomFYResults Dennis Kioko
Our vision for @Masoko is Africas product for the world. @sateeshkamath @alykhansatchu
Were more advanced in big data and later in artificial intelligence to see how algorithms work. @sateeshkamath #SafaricomFYResults @alykhansatchu
Any good #SafaricomFYResults shall have a set of comments and question from @alykhansatchu @thibaudrerolle
.@bobcollymore comments ahead of #SafaricomFYResults release #Twaweza bullish Video
Front Row @SafaricomPLC #SafaricomFYResults
H1 Service revenue 109.73b vs. 98.01b +12.0%
H1 Handsets and other revenue 4.49b vs. 4.01b +11.9%
H1 Construction revenue 0.20b vs. 0.08b +150.0%
H1 Voice revenue 45.70b vs. 47.35b +3.6%
H1 SMS revenue 8.92b vs. 8.63b +3.4%
H1 Mobile data revenue 17.55b vs. 13.40b +31.0%
H1 Fixed service revenue 3.23b vs. 2.40b +34.7%
H1 Mpesa revenue 30.05b vs. 25.87b +16.2%
H1 Total revenue 114.43b vs. 102.10b +12.1%
H1 Other income 0.32b vs. 2.28b -86.0%
H1 Direct costs [35.43b] vs. [32.50b] +9.0%
H1 Construction costs [0.20b] vs. [0.08b] +150.0%
H1 Other expenses [24.84b] vs. [20.99b] +18.3%
H1 EBITDA 54.27b vs. 50.81b +6.8%
H1 Depreciation and amortization [16.74b] vs. [16.35b] +2.4%
H1 EBIT 37.53b vs. 34.46b +8.9%
H1 Finance income 0.91b vs. 0.83b +10.2%
H1 Finance costs [0.63b] vs. [0.81b] -21.9%
H1 PBT 37.82b vs. 34.49b +9.6%
H1 Net income 26.20b vs. 23.93b +9.5%
H1 Basic and diluted EPS 0.65 vs. 0.60 +9.0%
Shareholders funds 94.82b vs. 107.49b -11.8%
Cash and cash equivalents at the end of the half year 28.07b vs. 43.03b -34.8%
Customer numbers +10.8% 2.5m at at 30th September 2017
Mobile Data Customers 16.9m +13.5%
MPesa Customers 19.3m +9.5%
Service Revenue +12.00% to 109.73b
Voice service Revenue 47.35b +3.6%
Messaging SMS Revenue 8.92b +3.4%
Mobile Data Revenue 17.55b +31%
MPESA revenue 30.05b +16.2%
Non Voice service Revenue increased to 56.8% of total service revenues
EBITDA +6.8% to 54.27b
EBIT +8.9% to 37.53b
Net Income +9.5% to 26.2b excluding one off adjustment in H1 17 Growth was 21.4%
Against a soft macro backdrop, Safaricom have served up another compelling set of Earnings.
Voice still alive and kicking, Data +31% and MPESA +16.2% lead the charge
They are looking at geographical expansion.
MSoko takes them into ECommerce.
Strong and safely earnings
Safaricom Slide re #Safaricomhyresults
.@SafaricomLtd #SafaricomHYResults #Twaweza @NSEKenya Frontier SSA TELCO
.@SafaricomLtd #SafaricomHYResults #Twaweza @NSEKenya @sateeshkamath #Frontier TELCO
Excluding the one off adjustment in the prior year, underlying EBIT grew by 20.6% YoY. #SafaricomHYresults @Safaricomltd
Strong financial performance driven by 12% growth in service revenue & 20.6% improvement in EBIT on an underlying basis #SafaricomHYresults @Safaricomltd
Kenya has an exponential potential for E Commerce says @sateeshkamath @SafaricomLtd #SafaricomHYResults #twaweza
.@SafaricomLtd can explore regional opportunities we are looking at the external markets Chairman #SAFARICOMHYRESULTS #Twaweza
#SafaricomHYResults @sateeshkamath in the hot seat Mr. @bobcollymore I am reliably informed is on the live Feed #Twaweza
#Safaricomh12018results #Twaweza @SafaricomLtd Chairman and @michaelj2
Service revenue 204.109b vs. 177.784b +14.807%
Non voice service contribution to service revenue 54.2% vs. 48.9% +5.300%
30 day active mobile data customers 16.636m vs. 14.082m +18.137%
30 day active MPESA customers 19.022m vs. 16.604m +14.563%
Customers 28.134m vs. 25.161m +11.816%
FY Service revenue 204.109166b vs. 177.784089b +14.8%
FY Handsets and other revenue 8.699845b vs. 8.621317b +0.9%
FY Construction revenue 76.183m vs. 9.279818b -99.2%
FY Total revenue 212.885194b vs. 195.685224b +8.8%
FY Other income 2.510905b vs. 231.823m +983.113%
FY Direct costs [66.749520b] vs. [62.310003b] +7.1%
FY Construction costs [76.183m] vs. [9.279818b] -99.2%
FY Other expenses [44.960599b] vs. [41.260953b] +9.0%
FY EBITDA 103.609797b vs. 83.066273b +24.7%
FY Depreciation, impairment and amortisation [33.234409b] vs. [27.942546b] +18.9%
FY EBIT 70.375388m vs. 55.123727b +27.7%
FY Profit before taxation 70.632073m vs. 55.762505b +26.7%
FY Total comprehensive income for the year 48.444418b vs. 38.104290b +27.1%
Basic and diluted EPS 1.21 vs. 0.95 +27.1%
Normal dividend per share 0.97 vs. 0.76 +27.1%
Cash and cash equivalents at the end of the year 5.955513b vs. 6.220005b -4.3%
3m additional customers have chosen Safaricom +11.8%
26m M Pesa Users
Deep analytics guiding a more customised customer relationship
FY17 Service Revenue M PESA & Mobile Data continue to drive growth +14.8% YoY
Service Revenue 204.1b versus 177.8b +14.8%
EBITDA 100.3b versus 83.1b +20.7%
EBIT 67.0b versus 55.1b +21.6%
Net Income 45.1b versus 38.1b +18.3%
Free Cash Flow 43.5b versus 30.4b +43.3%
Voice service Revenue +2.9% to 93.46b
SMS Revenue declined by -3.7% to 16.68b
Mobile Data Revenue +38.5% to 29.29b
Fixed Service Revenue increased by +37.4% to 5.24b
M Pesa Revenue +32.7% to 55.08b
Non Service revenue increased from 48.9% to 54.2% of total service revenues
Final Dividend +27.5%
Some Tweets from the Presentation
When you look at AI and VR, theres no other companies that have much
data than telcos.
The ultimate Dividend Payer SafaricomLtd raises FY Dividend +27%
The board has decided to extend bobcollymores contract for another 2 years.
not many Companies in the World are able to hike their Dividend +27%.
Thats the pre eminent Signal in the Noise.
Voice held up and is a beneficiary of the Demographic dividend
MPesa and Mobile Data are on a steep upwards Trajectory.
These were plain outstanding results.
6 month Period through 30th September 2016
H1 Service revenue 98.006590b vs. 84.913683b +15.4%
H1 Total revenue 102.094106b vs. 97.224275b +5.0%
H1 Direct costs [32.499462b] vs. [30.022259b] +8.3%
H1 Other expenses [20.991407b] vs. [19.998389b] +5.0%
EBITDA 50.805572b vs. 38.838467b +30.8%
H1 Depreciation, impairment and amortisation [16.344004b] vs.
H1 Profit before tax 34.489817b vs. 26.402729b +30.6%
Basic and diluted EPS 0.60 vs. 0.45 +33.3%
Shareholders funds 82.939473b
Cash and cash equivalents at the end of the period 43.028951b vs. 19.042871b +126.0%
Customer numbers +6.00% to 26.61m
Mobile Data Customers active in the last 30 days +13.7% to 14.93m
MPESA Customers +12.2% to 17.6m
Service Revenue +15.4% to 98.01b
Voice Revenue +1.1% to 45.7b [46.6% of total revenues from 53.2%]
SMS Revenue +8.1% to 8.6b [8.8% of total revenues from 9.4%]
Mobile Data Revenue +46.3% to 13.4b
Fixed service revenue +29.1% to 2.4b
MPESA Revenue +33.7% to 25.9b [26.4% versus 22.8% of Total Revenues]
Non Voice Revenue now 53.4% of service revenues
EBITDA increased by +30.8% 50.81b
Total service revenue grew 15.4 per cent while earnings before interest, taxes, depreciation and amortisation grew 30.8 per cent to Ks50.8bn.
However, Ks3bn of this comprised of a one off write back after a legal
dispute was resolved in the companys favour. On an underlying basis, ebitda grew 22.2 per cent.
Safaricom, raised its full year ebitda guidance from Ks89bn Ks92bn to Ks94bn Ks97bn, including the Ks3bn write back.
Some Tweets from the investor Briefing this morning
Ive been saying for four years voice is not dead, he said. Weve got 1m people added to the population every year. We havent moved into the bundled voice thing that many Europeans did and wished they hadnt.
These were once again seriously muscular Earnings. Voice Revenue declined below 50% of Total Revenues for the first time. Mobile Data +46.3% [10m Smart Phones on the network now] and MPESA +33.7% were Stand-Outs.
A write back of 3b pushed EBITDA higher.
Safaricom is an Outlier and Bob Collymore has presided over a Golden Age for shareholders which has seen the share price rise from 3.00 to 21.00 in his six years of leadership and this excludes dividends.
FY Service revenue 177.784089b vs. 156.246631b +13.784%
FY Handsets and other revenue 8.621317b vs. 7.117490b +21.129%
FY Total revenue 195.685224b vs. 163.364121b +16.681%
FY Voice Revenue 90.8b versus 87.37b +3.93%
FY MPesa Revenue 41.5b versus 32.63b +27.18%
FY SMS Revenue 41.50b versus 32.63b +10.59%
FY Mobile Data Revenue 21.15b versus 14.82b +42.71%
FY Direct costs [62.310003b] vs. [56.708576b] +9.878%
FY Other expenses [41.260953b] vs. [36.039990b] +14.487%
FY EBITDA 83.066273b vs. 71.191159b +16.681%
FY Depreciation, impairment and amortisation [27.942546b] vs. [25.570159b] +9.278%
FY Profit before taxation 55.762505b vs. 46.149545b +20.830%
FY Total Comprehensive income for the period 38.104290b vs. 31.871303b +19.557%
Basic & diluted EPS 0.95 vs. 0.80 +18.750%
Dividend per share 0.76 vs. 0.64 +18.750%
Shareholders funds 116.738947b vs. 104.276531b +11.951%
Cash and cash equivalents at the end of the period 6.109493b vs. 11.916371b -48.730%
+7.8% increase in total Customer Base to 25.2m
19.8% increase in 30 day active MPesa Customers to 16.6m
Safaricom has a 64.7% subscriber market share
Service Revenue +13.8% grew +15.2% in 2nd Half
Voice Revenue 51.1% of Service Revenue
NonVoice Revenue +26.3% now represents 48.9% of service revenue from
44.1% last year
Mobile Data Customers 14.1m +21.5%
7.9m Customers on 3G and 4G [0.7m on 4G Handsets]
FY 17 Guidance we expect EBITDA for FY17 to be in the range of 89b-92b.
Some of My Tweets from the Presentation
a seriously strong set of Results what with FY EPS +18.75% and FY
Voice at +3.93% is a seriously good outcome.
SMS Revenue was a Bullish Outlier with a +10.59% gain [Sportspesa refers].
Data continues to expand exponentially +42.71% with a Triple digit %
gain in Data Usage.
There are not many Companies in the World able to deliver these kinds of numbers and raise the dividend by such an amount.
Interesting FY EBITDA Guidance range has been tilted lower
FY 17 Guidance we expect EBITDA for FY17 to be in the range of 89b-92b.
H1 Voice revenue 45.19bn vs 43.67bn +3.48%
H1 Messaging revenue 7.98bn vs 7.17bn +11.29%
H1 Mobile data revenue 9.16bn vs 6.50bn +40.92%
H1 Fixed service revenue 1.86bn vs 1.49bn +24.83%
H1 MPESA revenue 19.35bn vs. 15.59bn +24.12%
H1 Other service revenue 1.37bn vs 1.18bn 16.10%
H1 Service revenue 84.91bn vs 75.60bn +12.31%
H1 Handset and other revenue 3.87bn vs 3.74bn +3.48%
H1 Construction revenue 8.44bn vs -
H1 Total revenue 97.22bn vs 79.34bn +22.54%
H1 Other income 0.08bn vs 0.55bn -85.45%
H1 Direct costs [30.02bn] vs [28.92bn] +3.80%
H1 Construction costs [8.44bn] vs -
H1 Contribution margin 58.84bn vs 50.97bn +15.44%
H1 Contribution margin % 66.23% vs 63.80% +2.43%
H1 Operating costs [19.22bn] vs [17.36bn] +10.71%
H1 Forex loss on trading activities [0.78bn] vs [0.08bn] +875%
H1 EBITDA 38.84bn vs 33.53bn +15.84%
H1 EBITDA margin 43.75% vs 41.97% +1.78%
H1 Depreciation. impairment and amortisation [13.55bn] vs [12.59bn] +7.63%
H1 Net income 18.08bn vs 14.71bn +22.91%
H1 EPS 0.45 vs 0.37 +22.91%
H1 Cash and cash equivalents 21.24bn vs. 30.49bn -30.34%
H1 Debt corporate bond [4.49bn] vs. [12.00bn] -62.58%
H1 Total net cash [debt] 13.16bn vs. 18.02bn -26.97%
H1 Operating free cash flow 17.43bn vs. 23.03bn -24.41%
H1 Free cash flow 9.52bn vs. 15.48bn -38.50%
A Selection of Tweets from the Briefing
These were really strong numbers plain and simple. Look at the Revenue acceleration +22.54% to 97.22b
Full Year Earnings through 31st March 2015 versus through 31st March 2014
Full Year Revenue 163.364121b versus 144.672477b +12.9%
Full Year Direct costs [56.708576b] versus [51.963714b] +9.1%
Full Year Other Expenses [36.039990b] versus [31.892090b] +13%
Full Year Earnings before Interest Taxes depreciation and amortisation 71.191159b versus 60.943298b +16.8%
Depreciation impairment amortisation [25.570159b] versus [25.787231b] [0.8%]
Full Year Profit before Tax 46.149545b versus 34.984430b +31.9%
Full Year Profit after Tax 31.871303b versus 23.017540b +38.5%
Full Year Earnings Per share 0.80 versus 0.57 +38.5%
Full Year Dividend Per share 0.64 versus 0.47 +36.2%
Cash at end of Period 14.030309b
Customer Numbers +8.3% to 23.35m
Mobile data Customers active in the last 30 days +21.2% to 11.59m
MPesa Customers active in last 30 days +14% to 13.86m
Voice revenue increased +3.7% to 87.41b
SMS Revenue +14.8% to 15.63b
Mobile Data Revenue +59.2% to 14.82b
Fixed service revenue +21.7% to 3.13b
MPEsa revenue +22.8% to 32.63b [now 20% of Total Revenue]
Non Voice service Revenue [MPesa,SMS,Broadband,other service revenue]
now 42.1% of total revenue from 37.4%
Launched 4G Network
By 31st March we had 4.3m customers on 3G enabled devices of which 3.4m were smartphones
A Selection of Tweets from Safaricomresults
Bob Collymore bobcollymore 13% Revenue growth to 156bn. Net profit up 38% to 32bn. FCF up 21% to 28bn. EBITDA up 17% to 71bn
alykhansatchu Brilliant FY numbers bobcollymore SafaricomLtd Mobile
Safaricom Limited SafaricomLtd SafaricomResults Financial performance highlights: 8.3% growth in subscribers. 12.9% growth in revenue.
These Results beat the already high bar of expectations by a wide margin.
Non voice revenue expanded from 37.4% to 42.1% of Total Revenue Year on Year and accelerated +27%.
Voice slowed down H2.
A dividend hike of +36.2% is in the finally analysis a powerful statement.
The Share price is headed higher
First Half Earnings for the Period ended 30 September 2013
First Half Earnings through Sep 30 2014 versus through Sep 30 2013
H1 Revenue 79.335723b versus 69.201287b +14.6%
H1 Direct Costs [28.917853b] versus [24.792624b] +16.6%
H1 Other Expenses [17.442953b] versus [15.555332b] +12.1%
EBITDA 33.527407b versus 28.860007b +16.2%
H1 Profit Before Taxation 21.106521b versus 15.908812b +32.7%
H1 Profit After Tax 14.711449b versus 11.260242b +30.6%
H1 EPS 0.37 versus 0.28 +32.1%
H1 Cash at end of reporting Period 30.489995b versus 19.808642b
Commentary and Key Highlights
Customer Numbers 21.85m versus 20.82m +4.9%
Mobile Data Customers active in the last 30 days 10.51m versus 8.48m +23.9%
MPesa Customers active in the last 30 days 12.80m versus 11.55m +10.8%
Revenue accelerated +14.6% to 79.34b
Voice Revenue 43.67b versus 41.04b +6.4%
SMS Revenue 7.17b versus 6.35b +12.9%
Mobile Data Revenue 6.5b versus 4.25b +52.9%
Fixed Service Revenue 1.49b versus 1.22b +22.1%
MPesa Revenue 15.59b versus 12.50b +24.7%
Non Voice Service Revenues increased to 40.2% of Total Revenues versus 36.4%
Free Cash Flow 15.5b +12.7%
By End September retail payments had surpassed 6.6b a month
Voice commands 78.1% market share of Voice Traffic
Lock Box Service
3.1m Smartphone Users on Network
Voice ARPU -1.13
SMS ARPU +4.32
MPesa ARPU +10.84
Mobile Broadband ARPU +18.64
DATA [SMS,BROADBAND,MPESA] 38.76% of Total Revenue
These Results beat the Street by a wide margin. The Outlier is Mobile Data and 3.1m Smartphones on the Network is to set to accelerate that further. MPesa might see some margin compression H2 but these were muscular results.
FY Revenue 144.67b versus 124.29b +16.4%
FY Voice Revenue 86.3b versus 77.33b +11.6%
FY Messaging Revenue 13.62b versus 10.15b +34.19%
FY Mobile Data Revenue 9.31b versus 6.62b +40.63%
FY Fixed Service Revenue 2.57b versus 2.11b +21.8%
FY M-Pesa Revenue 26.56b versus 21.84b +21.61%
FY Direct Costs [51.96b] versus [47.17b] +10.15%
FY EBITDA 60.94b versus 49.24b
FY PAT 23.02b versus 17.54b +31.24%
FY EPS 0.57 versus 0.44 +29.55%
FY Dividend 0.47 versus 0.31 +51.61%
Dividend Yield 3.65%
Free Cash Flow 22.69b versus 14.51b
Strong growth of 28% in non-voice service revenue, now 36% of total revenue 11.1% growth in customer base to 21.6m customers (19.4m in FY13)
Voice service revenue growth of 11.6% and nonvoice service revenue growth of 27.8%
Average blended rate per minute is Kshs 2.88 for national outgoing calls 2.6% increase in outbound (on,off net)calling time to 98.2 minutes per customer per month 9.0% decrease in inbound calling time to 12.8 minutes per customer per month
SAFARICOM LIMITED ANNOUNCES AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2014.
Solid growth in all revenue streams with continued significance of non
voice revenue in revenue generation
Total revenue increased by 16% to Kshs 144.7bn.
Service revenue growth of 17% to Kshs 138.4bn of which Voice service
revenue grew by 12% to
Kshs 86.3bn and Non voice service revenue increased by 28% to Kshs 52.1bn.
Customer base grew by 11% to 21.6m.
SMS revenue grew by 34% to Kshs 13.6bn.
MPESA revenue increased by 22% to Kshs 26.6bn.
15% increase in 30 day active MPESA customers to 12.2m 56% of our
total customer base.
Mobile data revenue grew by 41% to Kshs 9.3bn.
34% increase in 30 day active mobile data customers to 9.6m 44% of our
total customer base.
Fixed data revenue growth by 22% to Kshs 2.6bn.
Strong financial and commercial performance
24% growth in EBITDA to Kshs 60.9bn with an EBITDA margin of 42.1% up 2.5ppt.
Profit after tax increased by 31% to Kshs 23.0bn.
Free cash flow has improved by 56% to Kshs 22.7bn.
Capital expenditure for the period increased by 12% to Kshs 27.8bn.
Bob Collymore, Safaricom Limited CEO commented Once again we have demonstrated our relentless dedication to growing shareholder returns through superior commercial performance across our entire service portfolio as evidenced by our strong financial results.
We continued to deliver on our goal to transform lives by providing unmatched services we made huge improvements in our network quality
and we deepened financial inclusion with the introduction of Lipa na MPESA on the MPESA platform.
We have grown our total revenue by 16% to Kshs 144.7bn through focusing on providing quality services that resulted in double digit
growth across all our service revenue streams. Voice service revenue which now stands at 60% of total revenue grew at 12% while non-voice
service revenue which accounts for 36% of total revenue, sustained its growth trajectory with a 28% increase to Kshs 52.1bn driven mainly by
Data and MPESA. Devices and other revenue contributes 4% of total revenue.
Mobile penetration in Kenya stood at 76.9% with Safaricom recording the largest subscriber share of 67.9%. Our customer base has grown by
11% to 21.6m while churn rate dropped to 19% as a result of efforts centered on retaining and rewarding our loyal customers.
Voice service revenue grew to Kshs 86.3bn and accounted for 62% of our service revenue (down from 66% in the previous year). This growth was
supported by our loyal customer base attracted by a superior network experience, convenient airtime distribution and attractive consumer
propositions and promotions such as the Tetemesha campaign. Messaging revenue once again posted an impressive performance having
increased by 34% to Kshs 13.6bn which represents 10% of our service revenue. This was driven by increased usage from affordable SMS
bundles and SMS based promotions such as Bonyeza Ushinde. MPESA, now contributing 18% of total revenue, continues to be a significant driving force for our growth. This was driven by a 15% increase in 30 day active MPESA customers to 12.2m as well as an increase in the average number of transactions per customer. In the year, we expanded our MPESA agent outlets to 81,025 thereby promoting accessability of the service to our customers. With its launch, the Lipa na MPESA service has enabled cashless merchant payments and facilitated trade between businesses and their customers while improving business efficiency. As at 31 March 2014 the service had 122,000 registered merchants, of which 20% (24,137) were active on a 30 day basis.
Mobile data revenue grew at an impressive 41% driven by an increased uptake of affordable data bundles and a 34% growth in 30 day active
mobile data customers to 9.6m. 3.1m customers are on 3G enabled devices of whom 1.9m are on smartphones. Fixed data revenue increased
by 22% to Kshs 2.6bn on the back of 4% growth in fixed data customers, and a 16% increase in fixed service ARPU. We continue to focus on our Best Network in Kenya program with Kshs 27.8bn invested in the network during the year, our goal being to provide the best customer experience through improving our network quality, capacity and coverage. We have increased the population coverage of our 2G and 3G networks, completed network modernization in six key cities and rolled out fibre to 50% of our base stations in Nairobi. In October 2013, we commissioned independent drive tests to measure key quality metrics such as dropped calls, voice quality and data speeds, these tests show that our network delivers the best data services and comparative voice services.
Direct costs grew at 10% but at a lower rate than the 16% growth in revenue. This in turn resulted in an improvement in the contribution
margin to 64%.
Our operating costs stood at 22% of total revenue as we continue to explore further cost reduction initiatives focused on transmission
costs, network operating costs (including fuel) and IT operational costs.
For another consecutive year, we have delivered robust results and ensured value for our shareholders supported by growth across all our
revenue streams. This increase in revenue coupled with cost efficiency has driven the EBITDA margin to 42.1%, a 2.5ppt improvement.
Free cash flow has increased by 56% to Kshs 22.7bn as a result of the strong trading results and positive working capital.
In light of the strong financial performance in the past year, the Board recommends a dividend of Kshs 0.47 per share an increase of 52%.
Pending approval by shareholders we will pay out a dividend of Kshs 18.83bn, which represents 82% of our net income, for the year ended 31
March 2014 once again, the largest dividend in Kenyan history.
These are really strong results and that is evidenced in the +51.61%
uplift in the Dividend which is the loudest Signal in the Noise.
H1 Revenue 69.201287b versus 59.118149b +17.1%
H1 Cost of Sales [30.215501b] versus [27.529922b] +9.8%
H1 Gross Profit 38.985786b versus 31.88227b +23.4%
H1 Operating Expenses [22.829488b] versus [19.206278b] +18.9%
H1 PBT 15.908812b versus 11.509998b +38.2%
H1 PAT 11.260242b versus 7.7774849b +44.8%
H1 EPS 0.28 versus 0.19 +47.4%
Customer Numbers +8.3% to 20.82m as at September 2013
Mobile Data Customers who were active in the last 30 days +51.7% to 8.48m versus 5.59m
MPesa Customers 11.55m as at September 2013
Voice Revenue +12% to 41.92b [63.3% of Total Revenues versus 66.7%]
SMS Revenue +48.7% to 6.35b [9.6% of Total Revenues versus 7.6%]
Data Revenue +37.4% to 5.47b [8.2% of Total Revenues versus 7.1%]
MPESA Revenue +19.9% to 12.5b [18.9% of Total Revenues versus 18.6%]
MPESA,SMS,Data revenues +35.1% of Total Revenues versus 31.6%
EBITDA increased by 29.4% to 28.85b
Total Borrowings as at 30 September stood at 12b.
Cash and Cash Equivalents stood at 19.81b.
Net Cash 7.81b.
Free cash flow has improved by 167% to Kshs 13.7bn.
Improved guidance for the full year
Free cash flow expected to be in the range of Kshs 20bn to Kshs 21bn.
Calls To Government of Kenya to fast track LTE Frequency Allocation
Safaricom calls for allocation of additional frequency spectrum
resources to facilitate nationwide LTE rollout
Safaricom commits to providing free broadband access to public schools
identified as part of the Governments laptop project for primary
school children if LTE spectrum is alloctated by GoK.
A Selection of my Tweets from yesterday
The free cashflow will get everyone excited because it means they are
raising the dividend payout, AlyKhan Satchu, chief executive officer
of Nairobi based Rich Management Ltd., said in an interview.
Safaricom have again exceeded the Top End of Consensus estimates.
I think Mobile Data is set to turn parabolic.
I have a Price Objective of 12.00 now.
FY 2013 Earnings through 31st March 2013 versus FY through March 2012
FY Revenue 124.287856b versus 106.995529b +16.2%
FY Gross Profit 67.743420b versus 52.856310b +28.2%
FY Operating Expenses [40.643226b] versus [32.704953b] +24.3%
FY PBT 25.450565b versus 17.369400b +46.5%
FY PAT 17.539810b versus 12.627607b +38.9%
FY EPS 0.44 versus 0.32 +37.5%
FY Dividend 0.31 cents a share +40.9%
Cash and Cash Equivalents at End of Period
Customer Numbers have increased +1.8% to 19.42m [1.4m Customers were disconnected in this Period]
Mobile Data Customers who were active in the last 30 days increased by
56.7% to 7.13m as at March 2013
MPesa Registered Customers grew by 14.8% to 17.11m as at end March 2013
Voice Revenue +12.6% to 77.66b
SMS Revenue +30.4% to 10.13b
Data Revenue increased by +27.8% to 8.42b
MPesa Revenue +29.5% to 21.84b
MPesa,SMS,Data Revenue increased to 32.5% of Total Revenues from 29.2%
FY 2013 Voice Revenue now 65.8% versus 68.8% previously of Total Revenue
FY 2013 MPesa Revenue now 18.5% versus 16.8% previously of Total Revenue
FY 2013 SMS Revenue now 8.6% versus 7.8%
FY 2013 Data Revenue now 7.1% versus 6.6%
1.2m Customers using MShwari
Giving Free Cash Flow Guidance for FY 2014 of between 15.5 17.5b Kenya Shilling
These Results have exceeded the Top End of Consensus Expectations. FY
Revenue of 124.287856b +16.2%, FY PBT of 25.450565b +46.5%, FY PAT
17.539810b +38.9%, FY EPS 0.44 +37.5%
and a +40.9% Dividend Hike to 0.31 cents a share is a Tape that You cannot argue with. The Dividend Yield of 4.46% is high and handsome in particular in a World where Everyone is hunting for Yield. The Growth Curves look attractive and Note Well that Data grew +27.8% even after
a very sharp Tarriff Discount.
I expect New All Time Highs in the share Price.
M-Pesa now contributes 18.5% of Total Revenue Safaricom FY 2013 says BobCollymore
H1 2013 versus H1 2012
Total Revenue 59.118b versus 46.09b +21.72%
Voice Revenue 37.422b versus 31.49b +18.84%
Messaging Revenue 4.269b versus 3.65b +16.96%
Mobile Data Revenue 2.972b versus 2.44b +21.8%
Fixed Data Revenue 1.011b versus 0.63b +60.48%
MPesa Revenue 10.427b versus 7.88b +32.32%
HandSet Revenue 2.428b -21.93%
Direct Costs 22.399b versus 21.97b +1.95%
Operating Costs 14.427b versus 12.898b +11.85%
EBITDA 22.292b versus 14.76b +51.03%
Net Income 7.775b versus 4.013b
EPS 0.19 versus 0.10
Strong financial results driving investment and shareholder returns
Profit before tax increased by 113% to Kshs 11.5bn
Profit after tax increased by 94% to Kshs 7.8bn
51% growth in EBITDA to Kshs 22.3bn with an EBITDA margin of 37.7%
Free cash flow improved 791% to Kshs 5.0bn
Good revenue recovery from damaging price wars
Total revenue grew by 19% to Kshs 59.1bn
Voice revenues grew by 19% to Kshs 37.4bn
NonVoice service revenues grew by 28% to Kshs 18.7bn
Continued growth in significance of Non Voice service revenue (MPESA,SMS,Data)
Nonvoice service revenue now represents 32% of total revenues
Mobile and fixed data revenue increased by 30% to Kshs 4.0bn
MPESA revenue increased by 32% to Kshs 10.4bn MPESA has shown
significant growth with an increase in registered customers to 15.2m
9.7m of whom actively use MPESA at least once every 30 days. This
growth in active customers, coupled with an increased number of
transactions per active customer, led to a 32% increase in revenue to
Kshs 10.4bn. MPESA now makes up 18% of total revenues.
Improved guidance for the full year
Forecasting low double digit growth in total revenue
Expect to maintain the current EBITDA margin
number of active mobile data customers increase by 30% to 5.59m and a
9% increase in fixed data customers to 6,718. This growth in customers
coupled with increased data usage has resulted in a 30% growth in data
revenues to Kshs 4.0bn.
Key Performance Indicators
Total customers (m) 19.211m +6.51%
MPESA registered customers (m) 15.23m +2.41%
Mobile Data - 30 day active customers (m) 5.586m +29.7%
Fixed data customers 6.718m +8.76%
Churn (%) 28.46 +0.57%
Service revenue ARPU 490.69 +11.8%
Voice ARPU 319.56 +11.07%
SMS ARPU 38.5 +8.91%
MPESA ARPU 115.22 +25.66%
Mobile Broadband ARPU 91.72 -16.75%
Data (SMS,broadband,MPESA) % total revenue 31.6 +7.34%
Number of M-PESA agents 45.540
2G base stations 2815
3G base stations 1545
Wimax Sites 190
Strong 1st Half Results. I think we will see further Acceleration from here.
FY Results Analysis here
Total Revenue 107.00b versus 94.83b +12.83%
Direct Costs 43.47b versus 37.24b +16.74%
Operating Expenses 26.03b versus 21.87b +19.01%
EBITDA 37.5b versus 35.72b +4.96%
Operating Profit 20.15b versus 19.39b +3.93%
Net Financing and Forex Costs 2.78b versus 1.04b +168.44%
FY Profit Before Tax PBT 17.37b versus 18.36b -5.4%
FY Profit After Tax PAT 12.63b versus 13.16b -4.04%
Earnings Per Share 0.32 versus 0.33 -4.04%
Customers 19.07 versus 17.18 +11.01%
Registered MPesa Users 14.91m +6.45%
Number of fixed Data Connections 6.020m versus 4.483m +34.29%
Distinct Data Customers 4.553m versus 3.479m +30.86%
Voice revenues 68.96b versus 63.5b +8.59%
Total Data Revenues 31.24b versus 24.7b +26.48%
SMS Revenue 7.77b versus 7.54b +2.96%
MPesa 16.87b versus 11.78b +43.19%
Data [Mobile and Fixed] 6.59b versus 5.37b +22.84%
Data Revenue as % of Total Revenue 29% versus 26%
Mobile Service Revenue ARPU 456.00 versus 436.6 +4.43%
Dividend +10% 22 Cents a Share
Strong H2. EPS H2 0.22 versus 0.10 H1 +120%
MPesa remains the Jewel and the Menu Reprice happened at the end of the Reporting Period.
The Dividend increase is a Muscular Move.
They Have beaten the Street estimates.
Swot Analysis H1 2012 versus H2011
Revenue 49.63b versus 47.11b +5.3%
Voice 68.3% of Total Revenues versus 74.8%
MPesa 17.1% of Total Revenues versus 11.9% +49.3%
SMS 7.9% of Total Revenues versus 8.2%
Mobile Data 6.7% of Total Revenues versus 5.1%
Total Data Revenue 31.7% versus 25.2%
SGA +26% Forex Loss 1.3b Kenya Shillings Long Close Purchases have been hit by the FX
H1 2012 EBITDA 14.76b -21.6%
Net Income 4.01b versus 7.63b
EPS 0.10 versus 0.19
Pretax profit fell to 5.4 billion shillings 55.8 million in the
period from 10.4 billion a year earlier
Safaricoms average revenue per user APRU slipped to 438.9 shillings
from 456.6 shillings a year earlier, although minutes of use jumped
57.7 percent to 123.
Chief Executive Bob Collymore told reporters the company expected its
earnings before interest, taxes, depreciation and amortisation
(EBITDA) margin to finish in the low to mid 30s and for revenue to
grow by high single digits over the full year.
Providing the assumptions we have made about the macroeconomic
environment are right, then our guidance and EBITDA margins and
revenue should stay the same, he said.
92 per cent of all Internet subscriptions in Kenya are on Safaricom
This Period captured the most Brutal Period of Competition.
Essentially the Competition was [and in most cases still is] selling Minutes at Below Cost. The Voice Revenue Curve bottomed out, however, at the end of this Period. I reminded Michael and Bob, that there had been a similar H1 Outcome and My Analysis shows that Safaricom exhibits quite Beta, in times of High Inflation and Drought. The Macro Picture has been very high beta as well over this Period. The Shilling was the worst performing currency in the World until quite recently. Inflation is just shy of 20.00% and was at about 3.1% a year ago. I asked and was informed that the Recent Price Increase has seen some slackening in Usage [thereby freeing up the network] but this has been more than compensated by the Price Increase. So I think we are past
the worse in Voice. MPesa continues to exhibit hyper Growth. And the Mobile Internet continues to build. Its clearly been a very tough Reporting Period, however, I think we are through the bottom in the
FY 2011 Swot Analysis
12.9% Growth in Turnover to 94.83b
9.8% Growth in Ongoing Revenue 88.20b
Voice Revenue -1.7% 63.5b which is 66.9% of Total Revenue
SMS +45.3% 7.54b which is 5.7% of Total Revenue
MPesa +56% 11.78b is 12.4% of Total Revenue
Mobile and Fixed Data Revenue +80.3% 5.37b which is 8% of Total Revenue
Acquisition Revenue 6.64b
Revenue Growth +14.8% +19.1% +12.9%
Minutes of Use Per Subscriber increased from 60.6 to 96.0 minutes
13.8m MPesa Users +45.5%
Data Subscribers 4.9m +85.6%
Mobile Data SMS M-Pesa Revenue 26% of Total Revenue
Over 500,000 Data Enabled Hand Sets and Lap Tops sold in the Financial Year
Profit Before Tax PBT 18.36b versus 20.97b -12.4%
Blended ARPU 439 versus 457
Marketing Costs +37%
Dividend Held at 20c a share
Pay Out Ratio of 61%
EPS 0.333 a Share
The U.S. government has suspended 21 million in direct aid to Kenyas Ministry of Health amid concern over corruption, the embassy said on Tuesday
The so-called Afya House scandal, named after the building housing the Ministry of Health, was based on an audit report leaked to Kenyan media in October.
The audit showed the ministry could not account for 5 billion Kenyan shillings 49 million and funds meant for free maternity care had been diverted, newspapers reported.
Officials at Kenyas anti-corruption commission did not return calls seeking comment on Tuesday, but the ministry of health issued a statement.
The ministry has been raising matters raised in the internal audit investigations following the Quality Assurance audit by the National Treasury, the statement said.
Other autonomous institutions are undertaking independent investigations.