Safaricom Profit Surges to Record $260 MillionKenyan telecoms operator Safaricom have further strengthened their position as the biggest company in East and Central Africa after recording a 31 percent surge in profitability.
The leading telecoms operator in Kenya reported a record breaking $260 million net profit for the year-end December 2013, up from $198 million recorded in 2012. Safaricom CEO Bob Collymore said that this unprecedented performance was driven by growth in non-voice service revenue that include Short Message Service (SMS), broadband and its extremely popular money transfer service M-PESA that cumulatively increased by 28 percent to $587 billion.
"The full year results demonstrate our continued strong commercial and financial performance across our service portfolio," he said, adding the company is committed to its 'Best Network in Kenya' initiative through continued investment in network and services.
During the year, voice revenue continued to be the main money maker for the telecom giant, with revenues increasing by 11.6 percent to $974.2 million, which accounts for 62 percent of their total revenue.
Mobile data revenue increased by 41 percent to $105 million, whilst fixed data revenue also continued in its growth, reaching $28.2 million to due to a 4 percent growth in the number of clients.
M-PESA continued to drive growth in non-voice segment with revenues increasing by 22 percent to $300.2 million. Collymore said that Saraficom is investing heavily in network expansion and inland fibre optic cable to improve quality of services to sustain growth. The company has 21.6 million active users, commanding an impressive 67.9 percent of the market.