Safaricom six-month revenues up 5.3%; EBITDA, profit slump badly

11 Nov 2011

Safaricom, Kenya’s largest mobile operator by subscribers, has reported revenues of KES49.63 billion (USD511 million) for the six months ended 30 September 2011, up 5.3% compared to the KES47.11 billion reported one year earlier. Elsewhere, EBITDA slumped 21.6% to KES14.76 billion, and operating profit dropped 44.7% to KES6.04 billion. CAPEX for the period increased 58.5% to KES15.87 billion, with investment centred on network development across the board. Of the firm’s total revenue, ‘data’ services (including SMS and mobile banking service M-PESA) proved to be a key driver, increasing 30.4% to KES14.61 billion; data revenues excluding SMS and M-PESA sales grew 36.3% to KES3.08 billion.

In operational terms, Safaricom claimed 18.1 million mobile subscribers by the end of Q3 2011, up 8.0% year-on-year. The company’s 3G subscriber base increased 43% compared to the year-ago period, and stood at 5.1 million at the same date. Meanwhile, Safaricom said that 14.9 million subscribers are now registered to its M-PESA wireless money transfer system, up 9.8% year-on-year. However, the telco reported just 6,177 fixed broadband customers, albeit up from 3,223 year-on-year. Safaricom said its network comprised a total of 2,604 cell sites, 1,343 3G base transceiver stations (BTS) and 195 WiMAX BTS at 30 September 2011.

Kenya, Safaricom