Safaricom posts Sh77bn net profit in 2021

NAIROBI, Kenya May 12-Safaricom saw its net profit (excluding Ethiopia) rebound to pre-Covid-19 levels, growing by 12.2 per cent to Sh77 billion in the full year ended March 31 2022.

The telco’s mobile money platform M-Pesa continued to be the firm’s cash cow earning Sh107.7billion during the year.

The platform handled transactions worth Sh29.5trillion during the year.

“We are proud of our strong performance that reflects our focus on solving customer issues and societal challenges,” said Safaricom CEO Peter Ndegwa.

Voice service revenue grew by 0.8 per cent to Sh83.21billion; mobile data revenue grew by 8.1 per cent to Sh48.44billion

Customer growth slowed down in the period due to the ongoing implementation of changes in subscriber registration process.

Despite this, the firm’s one-month active customers grew by 4.3 per cent to 32.81million.

In total, Safaricom made Sh281 billion in revenue in the year from Sh250.4 billion recorded in 2020.

This was driven by growth in M-Pesa, mobile data, and fixed revenue.

Safaricom invested over Sh39.34 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.

The telco also invested Sh10.44billion in Ethiopia to fast-track its network rollout plans.

During the year, an interim dividend of KShs 0.64 per Ordinary share amounting to Sh25.64billion  was declared.

At the AGM to be held on 29 July 2022, a final dividend in respect of the year ended 31 March 2022 of Sh0.75 per ordinary Share amounting to a total of Sh30.04billion will be proposed for approval.

This brings the total dividend for the year to Sh55.69billion which represents Sh1.39 per share .

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.