Safaricom sees net income fall 23.9%

21 May 2009

Kenya’s incumbent mobile operator Safaricom has reported a 23.9% year-on-year drop in net income for the twelve months ended 31 March 2009, down to KES10.53 billion (USD140.7 million). The drop was largely attributed to a 25.8% rise in operating expenses, up to KES32.78 billion. Revenues were up 14.8% to KES70.48 billion for the year. The company added 3.2 million net new subscribers over the year, ending March 2009 with a customer base of 13.4 million. ARPU decreased from KES616 to KES475 over the period, as the company expanded its operations to rural areas. ‘It was probably our most challenging year in terms of operating environment,’ Chief Executive Michael Joseph said, ‘With the increased level of penetration into more rural areas where consumers’ disposable income is lower, it is anticipated that voice ARPU will continue to decline, however, with internet penetration at less than 10%, there is a significant opportunity to compensate.’

Kenya, Safaricom