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Cash-rich Safaricom well placed to weather Pandemic
Jul 5, 2020
Riding on a shift by subscribers to digital platforms, Kenya’s leading mobile phone operator Safaricom recorded a 19.5 per cent growth in net earnings to KSh 74.7 Billion for the financial year ended 31st March, 2020. The firm recorded a 4.8% rise in revenue, driven by sustained customer acquisition, a return to double-digit mobile data growth and continued M-PESA and fixed data growth. The growth was partially offset by a contraction of the betting industry and the free transaction fees associated with the mobile industry’s COVID-19 response.
The Board of Directors has proposed a dividend payout of KSh 56.09 Billion, at the rate of KSh 1.40 per share.
The splendid financial performance puts the telco in much better shape to weather market crises amid the impact of the Covid-19 pandemic.
“Our most critical support to the country remains to ensure network stability to support the usage in M-PESA, voice, SMS and data. As working from home becomes the new normal, this is a shift that we should be able to support effortlessly,” says Nicholas Nganga Chairman of Safaricom’s Board of Directors in a letter to shareholders ahead of the upcoming AGM.
He adds that Safaricom is keen to support both the authorities to find thoughtful ways to maximise revenue collection while also assisting businesses to grow.
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