Safaricom half year profits soar to almost KShs24B

Safaricom has announced its 2016 half-year results. PHOTO: GALLERIA

Telecom giant Safaricom has posted a rise in profit for six months ending September to Sh 23.93 billion from Sh18.08 billion in the same period last year, the company announced on the morning of Friday, November 4.

The firm attributed the 32.35 per cent growth to increased revenues from non-voice services, largely thanks to M-Pesa and data.

READ: Massive layoff expected as Ecobank Kenya closes branches

Chief Executive Officer Bob Collymore said the improved performance was as a result of increased use of non-voice devices which now account for 52.3 per cent of its total income.

According to the report, total revenues increased by 5.02 per cent to Sh102.1 billion from Sh197.22 billion that was realised the previous year.

Voice services however is still the single largest source of income at Sh45.77 billion in the six months, although it is has the slowest growth pace of 1.1 per cent compared with last year’s Sh45.19 billion.

M-Pesa services brought in Sh25.87 billion, a 33.7 per cent growth compared to the Sh19.35 billion it announced a year ago.

READ: The leaked report that exposed how Safaricom steals from customers

But it is data services that has registered the largest growth at 46.3 per cent to Sh13.40 billion.

Also, earnings from short messaging services (SMS) grew 8.1 per cent to Sh8.63 billion, the 40 per cent Vodafone-owned company said in the report.

Direct costs increased 8.3 per cent to Sh32.50 billion, the Star said quoting the report.

The company had scrapped M-Pesa transactions below Sh100, largely Lipa Na M-Pesa and person to person transactions.

READ: Kenyan woman busts housemaid on CCTV having sex in front of kid

Via the Star