Safaricom profits drop 6.8% as Wrangles escalate

Safaricom Plc has posted a 6.8 per cent drop in full-year net earnings on reduced M-Pesa and voice revenue.

In the results posted Thursday, the Telco posted an after-tax profit of Sh69.7 billion in the year ended March 31, 2021, compared to Sh73.6 billion.

M-Pesa earnings dropped marginally on transaction fee waiver imposed in March last year to cushion customers from the ravages of Covid-19.

The mobile money transfer platform accounted for 33 per cent of the total service revenue down from 33.6 per cent last year.

Service revenue recorded a marginal decline of 0.3 per cent to close at Sh250.35 billion driven by double-digit growth in the mobile data business, which grew by 11.5 per cent to Sh44.79 billion.

M-Pesa revenue dropped 2.1 per cent drop to Sh 82. 64 billion and voice dropping by 4.6 per cent to register a revenue of Sh82.55 billion.

“We remained resilient in a disruptive year, demonstrating strong operational capacity, diligence and commitment in supporting the country, our customers and shareholders through this uncertain time,” said Peter Ndegwa, Safaricom CEO.

“Our immediate focus in the year has been to ensure that network capacity, operations and financial services are prioritized to limit disruptions.”