Safaricom’s net profit for the year ended March 2020 jumped to Sh74.7 billion, an increase of 19.5 percent from last year’s earnings.
The telco firm attributed the rise in profit to double-digit growth in mobile data and M-Pesa services, with total revenue hitting Sh262.56 billion.
“Service Revenue in the year grew 4.8 percent to KShs 251.22 billion as at 31 March 2020 from KShs 239.77 billion driven by sustained customer growth, mobile data growth returning to double-digit along with sustained M-PESA and fixed data growth. The growth was partially offset by COVID-19 response and a contraction of the betting industry. On an underlying basis Service Revenue increased 5.9%. Customers in the year increased 12.2 percent to 35.6 million as at 31 March 2020,” said Safaricom in the results released on April 29.
The firm said it paid Sh32.23 billion in taxes from its Sh106.93 billion gross profit.
“The COVID-19 pandemic presents an opportunity for Safaricom to leverage its digital and data capability to support customers and community during this period and through the recovery process. We will focus on developing a range of digital products and services that will provide sustainable solutions to challenges in sectors like: agriculture, health, education and essential services.
Whilst FY21 is going to be a challenging one, I feel as a business we are well placed to navigate our way through the uncertainty that lies ahead,” said Safaricom’s new Chief Executive Officer, Peter Ndegwa.
Safaricom’s outgoing CEO and founder boss, Michael Joseph, said that the firm gave customers more value and delivered relevant products and services.
“As a result, the business has delivered exceptionally well, outperforming the guidance, in the process generating solid returns to our shareholders,” Mr. Joseph said.