Safaricom, has announced a 38.9 per cent increase in profits buoyed by M-Pesa, SMS and data revenues. The company revealed that there was an increase in profit after tax by 31% bringing it to Kshs. 23 billion.
Voice service revenue grew to Kshs 86.3bn and accounted for 62% of Safaricomâ€™s service revenue (down from 66% in the previous year).
Messaging revenue once again posted an impressive performance having increased by 34% to Kshs 13.6bn which
represents 10% of the companyâ€™s service revenue. This was driven by increased usage from affordable SMS bundles and SMS based promotions such as â€˜Bonyeza Ushindeâ€™.
M-PESA is now contributing 18% of the total revenue. This was driven by a 15% increase in 30 day active M-PESA customers to 12.2m as well as an increase in the average number of transactions per customer. As at 31 March 2014 the service had 122,000 registered merchants, of which 20% (24,137) were active on a 30 day basis.
In light of the strong financial performance the Safaricom Board has recommended a dividend of Kshs 0.47 per share, which is an increase of 52%. Pending approval by shareholders, Safaricom will pay out a dividend of Kshs 18.83bn, which represents 82% of the net income, for the year ended 31 March 2014. This is once again the largest dividend payout in Kenyan history.