- The platform’s income declined 2.1 p.c to Sh82.64 billion within the yr ended March, surpassing gross sales from voice which recorded a bigger drop of 4.6 p.c to Sh82.55 billion.
- The telco’s internet revenue fell 6.8 p.c to Sh68.6 billion within the assessment interval, after the coronavirus disaster hit income from monetary providers and calls within the yr to the tip of March.
- The Nairobi Securities Alternate-listed agency declared a remaining dividend of Sh0.92 per share, bringing its whole payout for the interval to Sh1.37 per share.
Cell cash platform M-Pesa has overtaken voice to grow to be the most important income earner for Safaricom, underlining the expansion of the monetary service that was launched on March 6, 2007.
The platform’s income declined 2.1 p.c to Sh82.64 billion within the yr ended March, surpassing gross sales from voice which recorded a bigger drop of 4.6 p.c to Sh82.55 billion.
The telco’s internet revenue fell 6.8 p.c to Sh68.6 billion within the assessment interval, after the coronavirus disaster hit income from monetary providers and calls within the yr to the tip of March.
The Nairobi Securities Alternate-listed agency declared a remaining dividend of Sh0.92 per share, bringing its whole payout for the interval to Sh1.37 per share.
The payout marks a slight drop from the distribution of Sh1.4 per share the yr earlier than.
M-Pesa’s rise to the highest got here regardless of the telco zero-rating charges on transactions of Sh1,000 and beneath from March 16 to December 31 final yr.
When expenses had been reinstated on January 1, Safaricom and the Central Financial institution of Kenya agreed on a assessment of the tariffs that noticed charges for low-value transactions fall by as much as 45 p.c.
Voice income was in the meantime harm by a drop in subscriber numbers moreover reductions supplied by the telco’s promotion dubbed “Tunukiwa”.
Chief government Peter Ndegwa mentioned the cell cash platform’s dominance will enhance within the coming years, reflecting its development alternatives and the maturity of the voice enterprise.
“M-Pesa will continue to grow simply because there are extra development alternatives. Voice is a mature enterprise and we count on it to say no slowly within the years forward,” Mr Ndegwa mentioned.
The monetary service now accounts for 31.3 p.c of whole income of Sh264 billion, forward of voice’s contribution at 31.2 p.c within the assessment interval.
M-Pesa has grown at a compound annual development fee of 36.05 p.c for the reason that yr ended March 2009 when it raked in gross sales of simply Sh1.5 billion, representing 2.1 p.c of whole income.
The expansion of voice had in the meantime decelerated, amounting to a compound annual development fee from 2009 when its gross sales stood at Sh58.79 billion and accounted for 83.4 p.c of whole turnover.
Safaricom’s outcomes for the yr ended March exhibits that M-Pesa now additionally beats voice by buyer numbers, indicating that the a number of makes use of of the platform helps it to develop its subscriber base at a sooner fee.
One-month M-Pesa lively prospects rose 13.6 p.c to twenty-eight.3 million whereas one-month lively voice subscribers elevated 6.9 p.c to 27.5 million.
In its first month, M-Pesa had solely 52,453 prospects, 355 brokers and transactions valued at Sh98 million or 5.3 p.c of Sh1.8 trillion it’s dealing with presently.
Began as a person-to-person money switch service, the platform has now grown to supply funds, credit score, worldwide remittances and enterprise evaluation and assist.
Former chief government Michael Joseph helped to popularise the revolutionary platform, driving the recruitment of the primary wave of shoppers and retailers.
He additionally led engagements with regulators together with the Central Financial institution of Kenya which allowed the nascent service to take off amid stiff opposition from banks.
His successor, Bob Collymore, constructed on these beneficial properties, together with by partnerships with banks like NCBA to create cell banking providers M-Shwari and KCB (KCB M-Pesa).
Mr Ndegwa is poised to additional develop M-Pesa regionally and throughout the continent by the telco’s three way partnership with its South Africa-based mother or father agency Vodacom Group.
Safaricom has made functions to supply extra providers reminiscent of investments and insurance coverage whose rollout awaits regulatory approval, Mr Ndegwa mentioned. He reiterated the corporate’s dedication to its coverage of distributing 80 p.c of its internet earnings.
“We’re dedicated to investing within the enterprise and sustaining a constant dividend payout ratio according to our present dividend coverage,” he mentioned.
Safaricom is projecting that its earnings may develop by double digits within the present monetary yr ending March 2022.
Earnings earlier than curiosity and tax (EBIT) is forecast to fall within the vary of Sh105 billion to Sh108 billion from the Sh96.1 billion posted within the yr simply ended.
Safaricom is awaiting the end result of its bid for one in every of two Ethiopia telecommunications working licences in an public sale the place its solely rival is South Africa’s MTN Group.
9 different corporations that had expressed their curiosity within the public sale dropped out on the final stage, with stories indicating that they had been spooked by alleged lack of transparency within the course of and necessities that winners construct their very own community infrastructure reminiscent of towers.