Safaricom Full Year Financial Results

Business
1

Net income up 19. 6% to Kes 38B.
Mpesa revenue up 27.2% to 41B

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Indeed these are Positive Financial Shocks!

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Kes. 5.29 Trillion transacted via MPESA.

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Sasa someone talk to mr Bob c to increase the limit of bundles to transfer 20 mb is small to sambaza to an upcoming peasant with a cheap smart phone

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Indeed these are Positive Financial Shocks.

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Collymore anapewa bonuthi ya mita ngapi?

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Zile bonus wanaume watapewa :rolleyes::stuck_out_tongue:

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They bought him a chopper I think, hizo bonus are they taxed? Pipi atapelekwa Ibiza Spain kuparty, hata mimi nitapeleka kachugwa huko someday

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samavicons.

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Alafu watupee dividends ya 10cts

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waaahhh… hiyo pesa ni mwenda!..

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Thats impressive

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By transacted, do they mean both deposits & withdrawals? Do they publish the deposit/withdrawal figures for MPESA?

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I don’t even look at the cheques they send me, sijui 1500kes,
Shida tu

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He…he yangu ilikuwa 1,700. I framed it and hanged it on the wall to show my kids i was once a shareholder of safcom. Kimunya messed the IPO by allocating billions of shares so that everyone gets a share with the hope (speculation) it picks up, we all make cash and we sing his praise forever. Well it was oversubscribed, we got a small allocation and the shares dived.

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Thanks to betting companies

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Betting does what? Kes. 1B per month?

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mbona wanatukanyagia dividends hivi safariconchieth

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This kind of profitability in kenya is unrealistic. You will find that the second most profitable company does not even come close. Even the other telcos can only drool.
Safaricom finds itself in a very unique and lucrative position of offering crucial services and at the same time being dominant in the market. As such they can pretty much twist everything in their favour and they always do. My analysis of safaricom tells no one benefits from safaricom apart from the govt in taxes/dividends, mobitelea(i wont say much about this scandal) and the employees in salaries/bonus and other incentive schemes. The rest who are the losers are as follows:

  1. Shareholders: The IPO was massively oversubscribed and so everyone got a very small allocation. The company pays very little per share and therefore the dividends are always meagre. You need a lot of shares to make anything meaningful. Also due to the number of shares the share price has never really gone up to make any significant capital gains which are taxable nowadays.
  2. Customer: Safaricom is expensive. This can mainly be attributed to a competition that is almost non existent, clueless and incompetent. The customer is therefore left with no choice but to stick with the most reliable but expensive alternative. Call costs, data and mobile money charges are simply too high for a developing economy that expects to change its situation. And safaricom is right at the top of driving these costs up to its advantage.
  3. Safaricom dealers: You would expect that dealers of safaricoms products are laughing all the way to the bank. Well, guess what, NO. They arent. Safaricom skews everything in their favour. If you sell airtime for example a ksh 100 rechearge voucher will make you 5bob while 1000 will make you 50 bob. A whooping 95% goes to safaricom. Even if you say that out of the 95 bob there is tax element, give it 20 and safcom is left with 75. Take off other costs and my estimation is safaricom still pockets 50bob in profit for every 100 sold. The dealer only makea 5. Imagine how much you have to sell to make anything meaningful. You are better off selling bread milk and eggs.
    Worst hit are the mpesa agents. The surelest way to throw your money down the drain in an effort to invest is to open up an mpesa shop. Everyone i know who has done so has closed. Why you ask? Fraud. Fraudsters and thieves target mpesa outlets more than any other business. There are all sorts of ‘kamiti’ cons with fraudsters calling you, conmen visiting your shop and the outright robbers. All this while safaricom shifts the blame to the agents with their kyc bullshit. The numbers used to con people are known and are never deactivated.
    Safaricom also keeps harrassing agents to keep their float levels high. Yet the reason for low float levels is their low return on investment (very low commissions) and liquidity problems. They expect you to keep your float levels intact (even from thieves) and meet other business expenses while you wait for income once a month. Why not pay weekly to assist traders
    The only reason mpesa shops remain open is, just like in gambling, new people are always willing to invest blindly and replace those who have failed.
    Truth is despite safaricoms billions, an mpesa shop cannot pay its rent, employee and licence(which is usually high) and still make profit
    Safaricom to me drains more from the economy than it gives
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