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M-Pesa thrusts Safaricom half-year profit to Sh26.2b

Safaricom reported Sh26.2 billion net profit in its half-year financial report on Friday compared to Sh23.93 billion same time last year. The 9.5 per cent rise in profit was on account of improved performance in mobile data, fixed service and M-Pesa services. According to the report, service revenue increased by 12 per cent from Sh98.01 billion to Sh109.73 billion for the half-year ended September 30, 2017.

Addressing shareholders on Friday Safaricom’s chairman Nicholas Ng’ang’a said mobile data revenue increased by 31 per cent from Sh13.40 billion to Sh17.55 billion. During that period, revenue from fixed services improved by 34.7 per cent from Sh2.4 billion to Sh3.23 billion, while earnings from M-Pesa increased by 16.2 per cent from Sh25.87 billion to Sh30.05 billion.

“A lot of opportunities exist in the African market, which Safaricom can utilise to expand some of its well-developed products,” Ng’ang’a said while unveiling the firm’s half-year financial report. The chairman revealed the firm is set to launch Ma Soko e-commerce platform on November 15, 2017.

Safaricom will also roll out a regional fibre network to 160,000 homes that will see an increased number of customers access fast internet speeds from the comfort of their homes. Safaricom has so far rolled out 95,000 homes connected to its fibre infrastructure.

Ng’ang’a said the move intends to increase the number of customers who can access fast, reliable and unlimited internet. During the period Vodafone transferred its 35 per cent of its 40 per cent shareholding in Safaricom to its majority-owned South African subsidiary Vodacom.

As of December 2016, M-Pesa was the world’s leading mobile money service processed a record 614 million transactions and served almost 29.5 million active customers through a network of more than 287,400 agents. M-Pesa services are now available in the Democratic Republic of Congo, Egypt, Ghana, Kenya, Lesotho, Mozambique, Tanzania, Romania and India.

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