BusinessKenya

M-Pesa Revenue Drive Safaricom Sh84.44bn Profit

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Safaricom PLC CEO Peter Ndegwa

M-Pesa revenue grew by 12.6% to KES 84.44bn while mobile data revenue increased by 12.1% to KES 40.67bn.

Earlier in October, Safaricom launched a unique customer offer, with no expiry on data and voice. Through this initiative, customers now have a simplified data and voice offerings, improved customer experience and voice and data affordability.

Safaricom PLC CEO Peter Ndegwa said “It is important to point out that our most critical support to the country remains to ensure network stability to support the usage in M-PESA, voice, SMS, and data. We have the responsibility to keep the country connected.”

In regard to this, this year’s financial results were driven by growth in M-PESA revenue, which grew by 12.6% contributing 33.6% of the service revenue and mobile data which grew by 12.1% to Ksh 40.67billion while Mobile data revenue increased by 12.1% to Ksh 40.67bn.

Safaricom PLC CEO Peter Ndegwa

Service Revenue in the year grew 4.8% to KShs 251.22bn as of 31 March 2020 from KShs 239.77bn 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% to 35.6mn as of 31 March 2020. M-Pesa’s one-month active customers increased 10.0% to 24.9mn while mobile data one-month active chargeable customers increased 10.2% YoY to 19.6mn. Capital expenditure in the network for the year ended 31 March 2020 stood at KShs 36.10bn. To finance this expansion, the company levered its statement of financial position and continues to invest a significant portion of internally generated cash.

Safaricom former chief executive Michael Joseph said “The results reflect the commitment this customer-centricity approach, with steady growth in service revenue while mobile data is now back to double-digit growth,”

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