Safaricom in record $260 million profitability

Trendsetting Kenyan telecoms operator Safaricom has cemented its position as the biggest company in East and Central Africa after recording a 31 per cent surge in profitability.

The company, which is the leading telecoms operator in Kenya controlling about 70 per cent of the market, posted record breaking $260 million net profit for the year ended December 2013 up from $198 million realised in 2012.

Safaricom CEO Bob Collymore said the unprecedented performance was driven by growth in non-voice service revenue that include Short Message Service (SMS), broadband and its extremely popular money transfer service M-PESA that cumulatively increased by 28 per cent to $587 billion.

“The full year results demonstrate our continued strong commercial and financial performance across our service portfolio,” he said, adding the company is committed to its ‘Best Network in Kenya’ initiative through continued investment in network and services.

During the year, voice revenue continued to be the main money maker for the telecom operator with revenues increasing by 11.6 per cent to $974.2 million, whihc accounted for 62 per cent of total revenue.

Mobile data revenue increased by 41 per cent to $105 million while fixed data revenue also continued to grow reaching $28.2 million due to a four per cent growth in number of clients.

The mobile money transfer survives, M-PESA, continued to drive growth in non-voice segment with revenues increasing by 22 per cent to $300.2 million.

While releasing the results, Collymore said Safaricom is investing heavily in network expansion and inland fibre optic cable to improve quality of services to sustain growth.

The company has 21.6 million active users, commanding 67.9 per cent of the market.

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