Leading Kenyan telecommunication company, Safaricom, has reported a Ksh. 74 billion for the financial year ended 31st March 2020. This is an increase from Ksh. 62 billion that the company reported in the previous period.

Service Revenue during the period grew by 4.8% to Ksh. 251.22 billion from Ksh. 239.77 billion in 2019. This was 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 betting industry. On an underlying basis Service Revenue increased 5.9%. Customers in the year increased 12.2% to 35.6 million as at 31 March 2020.

M-PESA one month active customers increased 10.0% to 24.9 million while mobile data one month active chargeable customers increased 10.2% YoY to 19.6 million. Capital expenditure in the network for the year ended 31 March 2020 stood at KShs 36.10 billion. To finance this expansion, the company levered its statement of financial position and continues to invest a significant portion of internally generated cash.

The company’s borrowings as at 31 March 2020 were KSh 8.00 billion while cash and cash equivalents stood at KSh 26.76 billion leaving a net cash of KSh 18.76 billion. The company remitted Ksh. 110.98 billion in duties, taxes and license fees for the year ended 31 March 2020. This increased the total duties, taxes and fees paid to the Kenyan government since inception of the company to Ksh. 809.50 billion.

The board of directors has resolved to pay out a dividend per share of Ksh. 1.40. This translates to a total dividend of Ksh. 56.09 billion which is 80% of the profit and total comprehensive Receivables and prepayments.