Safaricom rakes in Ksh. 31.5 billion in half year profit

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Safaricom-Eldoret
Safaricom CEO Bob Collymore stands next to the Safaricom Logo at a past event. PHOTO/COURTESY

Safaricom has raked in a net profit of Ksh.31.5 billion post tax in the half financial year ending September 30, 2018, the telecoms firm has announced.

According to the mobile service provider, the firm recorded the profit up from Ksh. 26.20 billion chronicled in 2017 which represents a 20.22 per cent gain. The profit increase was partly attributed to Safaricom’s mobile money provider M-Pesa and mobile data consumption that generated plenty in returns.

As of September 30, 2018, M-Pesa returns increased by 18.2 per cent while data consumption increased by 10.2 per cent to rake in Ksh. 35.5 billion and Ksh. 19.45 billion respectively.

“I’m pleased with the progress we made on a number of fronts in the first half of the year. We achieved solid results driven by strong M-Pesa gains and data consumption,” Chief Executive Bob Collymore said in a statement.

“We accomplished all this while sustaining investment in our network, which saw us invest Ksh.17 billion in the first half of the year that was driven by increased network roll out and acceleration of broadband and fibre deployment.”

In addition, Mr. Collymore noted that the Company had shifted its attention to incorporating mobile technology such as M-Tiba, Digifarm and Shupavu 291 to its current market in a bid to further improve the company’s overall subscriptions.

Offering his insight on the matter, Safaricom Chairman, Nicholas Ng’ang’a lauded the achievement but called on the government to reduce taxes charged on telcos.

“In the last six months, Safaricom paid approximately Ksh.48.2 billion in taxes against service revenue of Ksh.118.2 billion. This shows you how much we are paying to the government and these charges are being pushed to the consumer as well.” said Ng’ang’a at a press briefing in Nairobi on Friday.

“We need to find a common ground with the government to reduce the tax burden on Telcos.”

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