Safaricom announces good growth for H1 17

2738004495 c115af3d70 oSafariCom see good growth in H1 17. (Image source: Erik (HASH) Hersman/Flikr)Safaricom see 111.6 per cent year on year increase in free cash flow

Overall, these were better than expected and are ahead of management guidance. FY17 service revenue grew by 15.4 per cent yoy to KES98 bn and if we annualise this number and take into account seasonality, it is broadly in line with their full year estimate of KES206 bn. H1 17 net income grew by 32.4 per cent to KES23.9 bn, which is better than expected based on our full year estimate of KES47.1 bn.

Mobile data revenue has increase in five years for KES2.5 bn to KES13.4 bn. Total mobile data volume has also increased by 74 per cent from this time last year. Every month, 14.9 mn customers use SafariCom mobile data. This has almost trebled from FY 13 where only 5.6 mn people were using the service. 

In addition, customers are consuming more online data. The usage per customer per month at 231MBs has increased by 44 per cent, year on year. Voice and messaging revenue have also increased by 6.8 per cent and 6.5 per cent respectively. This equates to a revenue of KES45.7 bn for voice nd KES8.6 bn for messaging revenue. 

According to SafariCom's press release, the results are stronger than expected earnings were due to better than expected cost management. Management guidance for FY17 EBITDA is changing from KES89-92bn to KES94-97bn and its CAPEX guidance is increased from  KES32-33 bn to KES34-35 bn.

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