Pandemic slashes Safaricom Kenya profits

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Safaricom

from MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) SAFARICOM, partly because of the coronavirus pandemic, has suffered a 6 percent decline in net profit for the half year ended September 30.

Net profit decreased to KSh 33,07 billion (US$303 million) with service revenue hitting KSh 118,41 billion.

“Our business has proved to be resilient despite tough operating conditions,” said Safaricom Chief Executive Officer, Peter Ndegwa.

“There is no doubt that COVID-19 has dealt a huge blow to many people not just in Kenya, but across the globe. This has been a tough period for businesses—small and large alike—and our customers. We are committed to walk through this journey together.”

Despite a 4,8 percent drop in service revenue, Safaricom increased capital expenditure by 25,5 percent to KSh22,75 billion.

Voice service revenue dropped by 6,5 percent to KSh40,19 billion while M-PESA revenue dropped by 14,5 percent to KSh35,89 billion.

The continued focus on customers led to a 10,2 percent increase in one month active subscribers for the period, with customers growing across all revenue streams.

Safaricom on Monday announced plans to provide 100 percent 4G network coverage across Kenya by end of this year.

– CAJ News

 

 

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